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The 7 Biggest Credit Mistakes People Make
By Roy Primm

With new credit laws and regulations constantly changing, many people make costly mistakes that could affect there credit scores.

Ignoring changes in today's credit landscape can result in paying more for everything. These credit mistakes can force you to pay higher interest rate loans. Other mistakes will have you paying higher insurance rates and even making it harder to rent an apartment.

Yes, having good credit is more important now than ever . In fact, your credit is often more important to businesses than the cash you have. If you don't believe that last statement try renting a car or reserving a hotel room.

Getting credit is easier than ever; managing your credit is a little more difficult. The proof is the number of bankruptcies people file each year. It seems the easier it is to get credit the more financial trouble people can run into.

To help protect yourself read and follow the 7 biggest credit mistakes most people make. Note: I omitted late or missing a payment because of it's an obvious credit mistake to most.

1. Using Credit To Make Themselves Feel Good.

These people have a name coined for them, they're called recreational shoppers. People who shop for entertainment or to fight boredom often result in fighting financial problems in time.

2. Closing Credit Card Accounts.

This is what people usually do to resist the temptation to use or abuse credit cards. But with the FICO scoring system closing credit accounts will often hurt your credit. Instead of closing the accounts simply avoid using them or cut them up if the temptation is too great.

3. Not Teaching Your Children Responsible Credit Use.

Children learn from what they see and experience. So if your children see you using credit excessively and irresponsibly they will get the same habits.

4. Paying Only The Minimum Payment Each Month.

This is a sure sign you're not managing your credit properly. Of course, the credit card companies love you for doing this. People like you make them excessively rich. But it's murder on your personal finances. And the payments will slowly suck the financial life out of you.

5. Not Protecting Your Credit.

One of the fastest growing crimes today is Identity Theft. According to the United States Federal Trade Commission, as many as 9 million Americans have their identities stolen each year. Identity theft starts with the misuse of your personal information. This includes your Social Security number, credit card numbers, or other financial account information according to FTC research. Pay attention who you give these numbers to. Avoid giving them out when possible especially to people who call you over the phone.

6. Using Credit Card or Checks For Cash Advances.

This is where credit cards make a killing off you. Imagine loaning you money, charging you interest on that money and tacking on even more interest for loaning you cash. And best of all they get to charge you interest immediately and not have to wait 30 days to do it. Wow, maybe I'm in the wrong business.

7. Ignoring Your F.I.C.O Score.

It's still hard to believe, but there is still a large percentage of the adult population who don't know what a FICO score is. And if they know what it is, they have no idea what there FICO score is.

Ignoring your FICO score can be a major mistake because more and more employers, insurance companies, landlords and other important people in your life use it to make value judgments about you.

These are the 7 biggest credit mistakes people make before they're buried in financial problems. I urge you to stay alert to any of these potential problems and correct them before it's too late.

Roy Primm Founder has written hundreds of articles helping thousands to live better on less money. Get free ebook 99 Ways To Live Better On Less Money at ...Shopping Help

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