How to avoid some common credit mistakes

Nothing can derail the purchase of a car more than poor credit. Just when it seems like you're ready to get behind the wheel of your new ride, a few things from your past can come back to haunt you. Although New Jersey Auto Auction offers you guaranteed credit approval, you will still want to ensure that your credit is good, and according to Kiplinger.com there are several things you can do to avoid common pitfalls.

Ignoring parking tickets or other similar fines will certainly wreak havoc with your credit. Anything that gets transferred to a collection agency will reflect negatively on you and even if you do eventually pay up, the fact that it had to get that far will follow you for around seven years, the website reports.

You will also want to avoid opening up a number of cards in a short period of time. Experts say that while having several cards for years will not be a problem, if you take on new ones very quickly it will reflect poorly on your credit score. Additionally, you likely will not see any of the added benefits of having more credit cards anyway.

Consumers should resist the temptation to make large charges to store cards. It may seem like a good idea to put big purchases, be they furniture or electronics, on store-specific credit cards. Even though it is attractive to have a long time to pay off the balance, having it sitting there for that long may be detrimental to making purchases in the future.

Luckily, New Jersey Auto Auction has options available to those who may have made a few credit missteps in the past. In fact, buying a car and paying off your loans on time is a great way to built credit history for future purchases.