In the first part of this blog, we went over some of the big mistakes many people make when applying for credit cards. While the first series of mistakes focused on credit cards and credit scores, there are a few more issues we think you should be aware of. Many people fail to take other aspects of their financial life into consideration before applying for credit. Considering these tips can help you get the right credit card, and stay out of credit debt.
3 Tips to Remember
Never, ever co-sign a loan. We’ve gone over this subject in other blog posts, explaining why you should never do this. In short, you’re responsible for a loan when you co-sign. If you’re co-signing with someone who is financially irresponsible, you’re setting yourself up for failure. This will wreck your credit score.
Never miss a payment on a line of credit. Strangely enough, many people tend to consider credit debt only in terms of credit cards. While missing a credit card payment can hurt your credit score, missing a payment on other lines of credit can hurt you just as much! Whether it’s a mortgage payment or a car loan, pay attention to those bills, and make sure they’re paid!
Maintain income stability. Translation: if you have a job, keep it – at least while you’re applying for credit. No lender wants to see you jumping from job to job. Also, we don’t need to point out that you’re less likely to find yourself in credit debt when you keep a job!
Taking these tips into consideration can help you look like a shining star to any creditor!