Credit repair is a thing no one wants to need, but things sometimes accumulate quickly in life, and the next thing you know the whole situation is difficult to pull the other way. In our lifetime, there are a few instances where bad events all happen at once and our credit just snowballs into something really bad. Unfortunately, credit works pretty much in a way in that it hurts you more and more as you make mistakes with it. So therefore, to avoid making the ball roll the wrong way, here are a few tips that could help you negate the effects of a little bad luck.
Don't think of minimum payments as a viable option
Surely, the concept of minimum payment has to be the one that hurts us the most in credit repair. We often think in terms of doing good when we see the terms "minimum payment", like that's satisfactory, but it's far from being the case. A minimum payment should be a last resort kind of deal when you really need some liquidity for a particular month. Plus, minimum payments increase with time so it's not like it's a safe trick you will be able to resort to forever. What's the most dangerous about it is how it takes us away from the true reality of credit – making our full payments. Just think about the bad habit you could be developing every time you make the cheapest payment asked and that could lead you to credit repair.
Don't put things on your credit card that don't belong there
Credit cards are surely practical methods of payment with no fees and their reward plans, but pulling out your credit card out of your pocket when you were going to pay with your debit card anyway could end up costing you a lot. Unnecessarily putting a purchase on your credit card could make you mentally classify the purchase as a payment you could postpone, which may contribute to you cheating on your budget for the month. Don't forget credit repair and debts aren't all about numbers – credit is often about split-second decisions, so being disciplined enough to pull out that debit card instead of the one with the rewards can be a very hum... rewarding move for a lack of a better word. Especially think about changing your habits at restaurants and bars with this one. Bring cash with you to avoid pulling out your credit card as you chat with friends. Or else you will then have a bunch of restaurant expenses on your card and will need credit repair without seeing it coming.
And finally don't forget to set up an email alert or use the web to check your current transactions and available limit... even when times are bad! Indeed, looking away from your credit repair results when you know you’re not doing too good could be another bad habit. So, do those two things – do better than the minimum payment and don't play a switcharoo between your debit and credit cards. They were both made for different purposes, and besides skipping on a few reward miles shouldn't be the end of the world. Maintaining your credit in an organized and up-to-date manner should be your number one priority.