A poor credit score will most likely affect you if it hasn’t already. In the current economy, a FICO score of 600 or below will lump you in with the 68 million other Americans who are also struggling in the realm of credit.
A poor credit score will undeniably have adverse effects on your financial future if not addressed.
If you have fallen into a bad credit situation, avoid these three critical mistakes to keep it from going from bad to worse.
1. Failing to learn how to improve your situation
If you have bad credit, it’s imperative that you educate yourself about how credit works and the necessary steps to improve your situation. You can start right now by making on time payments and paying down your balances, as these factors are the largest weights on your credit report.
2. Neglecting the problem
Don’t keep your head in the sand! Neglecting the problem will only make it worse. This is a stressful way to live as you will constantly have the prospect of lawsuits, wage garnishments, or bankruptcy looming over you.
3. Falling for debt relief scams
According to a Federal Trade Commission report, 1.7 million Americans fell victim to debt relief scams in 2013. Disreputable agencies will often take advantage of someone’s dire financial situation through promising upfront cash and later charging an incredibly high interest rate. Do not do business with agencies that sound too good to be true. Furthermore, always know that promising money up front and “no credit check required” are often red flags of a company looking to prey on your bad credit situation.
Bad credit situations happen. There’s always an opportunity to get back on track! To learn more about improving your credit and avoiding critical mistakes, contact Moodie Bluez Consulting.