3 Easily Avoidable Credit Pitfalls
December 22, 2009 · Print This Article
There are so many credit problems out there that it can feel like there is nothing you can do to avoid bad credit. You come up short on money and you use your credit to make up the difference.
You do not really have the money but credit can carry the burden of extra bills and allow you to put off dealing with expenses until a later date. Some credit missteps are harder to avoid than others, however. Here are 3 easily avoidable credit pitfalls that you can familiarize yourself with and never have to point to again as your reasons for your credit problems.
Credit Scams
There are all kinds of credit scams out there. You can find them online, on the phone, or even in the mail. Scam artists will do whatever is necessary to get your credit card information so that they can win some free money courtesy of your credit cards. You may believe that such scams are easy to avoid but these scam artists are becoming more creative every day.
These days, credit scams and credit fraud are so prevalent that scam artists are using fraud protection services as a cover. They often contact unsuspecting individuals under the guise of fraud protection services just to get credit card information. They will tell a credit card holder that fraudulent charges have been made on an account and that they need to confirm certain account information. It is when the cardholder, thinking they have already been the victim of credit fraud, reveals this account information that the credit fraud actually occurs.
Co-Signers Who Don’t Pay Up
Be careful whenever a co-signer is involved. Friends, family members, and even spouses seem like ideal candidates for so-signer agreements but your name will be tied to these debts until they are paid off. While you want to help out those closest to you, having your name attached to these accounts if they are not paid off can be a major blow to your current credit rating and to your ability to obtain more credit in the future.
Sometimes these co-signer problems cannot be avoided or it is too late to avoid them. If this happens then you want to do whatever is necessary to handle or close these accounts. Know that your credit will be vulnerable until you do.
Using Credit To Live Beyond Your Means
This is the oldest credit problem story in the book. People use credit to spend more money than they have and, unsurprisingly, they have trouble when it comes time to pay off this debt. Spending more money than you have to maintain a lifestyle you cannot afford is how crushing debt is born.
Keeping up with the payments on overtaxed credit accounts is bad enough but sometimes unfortunate circumstances make the situation impossible. You could lose your job, the one that did not pay enough to maintain your lifestyle, and still have all the payments without your main source of income to keep the wolves at bay. While you could not afford this life before, now you cannot even begin to pay for it.
These are 3 easily avoidable credit pitfalls. Credit scams, delinquent co-signers, and a lifestyle that you cannot afford are all ways to quickly amass poor credit scores, large amounts of debt, and some bad times. These situations can be avoided if you keep an eye out for them and think about the potential consequences of your actions.
Related Articles
- Late Payments Can Hamper Your Credit Despite the slumbering nature of the economy and its slow positive turn, it's pretty easy to fall into a predicament where you're spending more than
- Keep Your Credit Limit in Check Being mindful of how you spend your money is something that most people learn at a early age. Even so, there are plenty of opportunities
- Be Careful When Choosing A Credit Card One of the biggest cornerstones to the American (and even global) economy is the credit industry. The United States, for better or worse, relies on
- Handle Credit With Caution The economy of the United States is largely based on credit. Everything that has driven the system so far has relied on a means of
- Credit Cards May Improve Credit Greatly Owning a credit card is something that is almost a standard aspect of the average lifestyle these days. Once considered a particularly luxurious investment, credit
See all three of your credit reports and credit scores with your 7-day FREE Privacy Matters 1-2-3 trial membership.
credit card number stolen. it's good to be back in a city.
http://forums.kiplinger.com/index.php
http://moneycentral.msn.com/community/message/default.aspx
Article by Wilson Crow at 2010-07-29 18:52:14
Categorized in best business credit cards,
For those entrepreneurs with less than excellent credit history, a merchant cash advance can surely become a necessary part of getting by with small business overhead.
I just found the SOSQuebec(dot)com website last night and was just horrified at the extent of CPS crimes in Quebec. Thank you for posting this video!
Go to your bank and ask them about a secured card.
Make sure it reports to the credit bureaus – and you replace the money in full each month.
Ask to see if this card will turn into a credit card after a year even with a bankruptcy on file.
That is your best hope to rebuild credit.
Once it turns into a credit card – remember to pay in full each month.
Not the minimum, not close to the minimum, but the entire balance – no games.
Carrying balances can destroy credit and in some cases ruin lives.
/
not paying a debt is NOT a crime, moron
Words!
AE is the best, but also the hardest to get approved for. Check here for more details.
Hmm I dont necessarily agree. Theres no question Christy was well beyond her prime…….And it still took a lot from Laila to put her down. Although we’ll never quite know how this would have turned out if they both met in their primes.
Worried about credit card fraud when buying online? You should be!!! Please read here to see how we treat your…
“examine some protozoa” that was hilarious lol
5284 7384 9024 9163 ex07 12 Code 642
I know! Let’s just take everyone who has ever made a mistake in life and put them on an island somewhere to rot. (and Alex, this is not directed at you, as you may have noticed I’m rather bitter about this. Once I lived out of society’s precious little box, I realized how fucking hard it is to get back in. When I hear “get a job” directed at a homeless person, I see red.)
Wesabe: Credit Score: How does student loan debt affect credit score?: I have my credit card debt basically paid o…
take it easy. mister skimmer. with a nickname like that. you are going to be in trial for treason, not robbery.
*heavy sigh* — While I’m admittedly distrustful of law enforcement as a whole (mainly because of the thin-blue-line mentality), I’m also a supporter of their collective work overall…and to read about this type of mischief and mayhem – resulting in murder – makes me more than sad.
Great video, but it ignores the role of the Federal Government: legislation & policy made the sub-prime mortgages attractive in the first place by encouraging & even mandating them to an extent. At the time it made political officials look good because the economy was so strong. When their bad economics showed us all the truth, politicians acted like it was all the fault of banks & investors. Now they’re trying to “fix” things again….
INDIANS SOUTHspice Christian Credit Card a Savior to Bad Credit, Build a Better Credit Score …
6 Great ways to cut commuting costs
Student loans, secured loan from your bank against a Certificate of Deposit which the bank holds, auto loan, etc, will all build your credit.
Reasons Why the FCRA, Fair Credit Reporting Act, Encourages Consumers to Fix Bad Credit
A topic of concern by most of us on the Internet. Thanks for sharing.
Take $500 to your nearest credit union and apply for a secured card. Bring proof of employment. The $500 will be deposited into a savings account that will guarantee (not fund) the card in case you make a late payment or default. The CU will issue you a Mastercard or Visa branded card that you use just like a regular credit card. After a year or two of responsible management, they will probably convert it to an unsecured card with a higher credit limit. And you will have that money in savings along with some interest.
Secured cards are credit cards that are reported to the credit bureau exactly the same way as unsecured cards and are an excellent way to establish credit and build your credit score.
The reason I recommend credit unions over banks is because the card APR will be lower and it's doubtful you will be charged a membership fee. Secured cards from banks, when you can find them, are almost always high APR and all of the ones I know of charge an annual membership fee.
How to improve your credit score – Video – Personal Finance
Give Plantly a little information and it’ll whip up a suggested diversified investment plan tailored to you. Currently Plantly is in private beta, but we’ve got 5,000 invites so you can try it out right now. More »
the old man looks like a hippie!
How Do You Build Credit-Tips for Starting A Positive Credit History
whast bad is my mom was using bank of america and they took out 1500 for a 500 fee. they only gave 100 back. she switched to USAA. she is much happier now.
lefty lefty rigty righty credit card
The Department of Social Protection in Ireland will offer citizens smartcard to reduce bureaucracy & welfare fraud -