Having a credit history is essential for making big purchases. Unfortunately for some people, their past isn’t quite as rosy and pristine as they’d like. In fact, many would-be car shoppers have to deal with subpar credit scores, shaky payment histories or even bankruptcy filings. <\/p>\n
But it’s never too late to pick up positive habits – and ignore the bad ones. Here are three credit mistakes you should avoid like the plague. <\/p>\n
Mistake 1: Not reading the fine print<\/strong> Mistake 2: Only making minimum payments <\/strong> USA Today reported that people using rewards cards should also be motivated to make bigger payments. The cash-back rewards or perks received for using a card usually amounts to 1 or 2 percent of the total purchase, which isn’t enough to outweigh interest rates. To truly take advantage of these rewards, pay off your balance in full, or as much of it as you can. <\/p>\n
\nYou could think you have a great deal on a credit card, but unless you comb through all of the fine print, you’ll never know for sure. Your card could be loaded with hidden late fees, minimum balances, gradual interest rate increases or other penalties. Make sure you know what to expect before getting involved with a company. Any time a policy changes, it could be enough to disrupt your payment pattern, so work to avoid these situations. <\/p>\n
\nSome people fall into the trap of using a credit card to buy things and then only making minimum payments on their bill. That’s a good way to quickly build up debt without reaping the rewards on your credit score. Instead, try to pay off the entire balance whenever possible. <\/p>\n