{"id":140876,"date":"2020-12-24T13:04:00","date_gmt":"2020-12-24T10:04:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/5-credit-mistakes-that-can-come-back-to-bite-you\/"},"modified":"2020-12-24T13:04:00","modified_gmt":"2020-12-24T10:04:00","slug":"5-credit-mistakes-that-can-come-back-to-bite-you","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/5-credit-mistakes-that-can-come-back-to-bite-you\/","title":{"rendered":"#\n  5 credit mistakes that can come back to bite you"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2943fab95a8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2943fab95a8\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/5-credit-mistakes-that-can-come-back-to-bite-you\/#The_worst_offenses_and_why_they_hurt_the_most\" >The worst offenses, and why they hurt the most<\/a><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/5-credit-mistakes-that-can-come-back-to-bite-you\/#What_makes_a_credit_mistake_haunt_you\" >What makes a credit mistake haunt you?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/5-credit-mistakes-that-can-come-back-to-bite-you\/#Common_mistakes_that_can_hurt_your_finances\" >Common mistakes that can hurt your finances<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/5-credit-mistakes-that-can-come-back-to-bite-you\/#Sometimes_doing_nothing_is_the_mistake\" >Sometimes doing nothing is the mistake<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/5-credit-mistakes-that-can-come-back-to-bite-you\/#Bev_OShea\" >Bev O\u2019Shea<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  5 credit mistakes that can come back to bite you<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"The_worst_offenses_and_why_they_hurt_the_most\"><\/span>\n  The worst offenses, and why they hurt the most<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000105783\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<p>       <em>This <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/finance\/5-credit-mistakes-that-can-haunt-you?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=870923\" class=\"icon none\">article<\/a> is reprinted by permission from <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/blog\/?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\"><em>NerdWallet<\/em><\/a><em>.\u00a0<\/em><\/p>\n<p> Some credit mistakes are a lot worse than others. Little ones, like paying a credit card bill a day late, may cost you a penalty fee, but that\u2019s a relatively minor irritation \u2014 it\u2019s not going to stand between you and a mortgage. Other seemingly small slip-ups can lead to full-fledged disasters.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"What_makes_a_credit_mistake_haunt_you\"><\/span><strong>What makes a credit mistake haunt you?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>Some things can be reversed quickly. Running up credit card bills can tank your credit score, for instance, because the\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/finance\/tips-for-lowering-credit-utilization?utm_campaign=ct_prod&amp;utm_content=870923&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">portion of your credit limits you\u2019re using<\/a>\u00a0is weighed heavily in credit scoring. But when you pay down the debt, the damage dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears as lower balances get reported to the three major credit bureaus, Equifax<br \/>\n        EFX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208789454\/composite\" class=\"negative\">-0.60%<\/bg-quote><span>,<\/span><br \/>\n       Experian<br \/>\n        EXPGY,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/208623784\/delayed\" class=\"negative\">-0.39%<\/bg-quote><br \/>\n       and TransUnion.<br \/>\n        TRU,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/209192458\/composite\" class=\"positive\">+1.27%<\/bg-quote><\/p>\n<div class=\"paywall\">\n       Mistakes that have long-running ripple effects hurt the most, says credit expert John Ulzheimer. A late payment, for example, can get sent to a collection agency, then perhaps grow into a repossession or bankruptcy. Those batter your credit and stay on your credit record for years. Likewise, cosigning a loan for someone who is later unable to pay can hamstring your finances for a long time.<\/p>\n<p><strong>Also read: <\/strong>Four <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">travel<\/a> credit card benefits you absolutely need in 2021<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Common_mistakes_that_can_hurt_your_finances\"><\/span><strong>Common mistakes that can hurt your finances<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p><strong>Missing a payment:<\/strong>\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/finance\/late-bill-payment-reported?utm_campaign=ct_prod&amp;utm_content=870923&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">A payment that\u2019s a little late<\/a>\u00a0might cost you a penalty fee, but your credit score won\u2019t suffer because creditors can\u2019t report your account as delinquent until it\u2019s 30 days past due. If you have a high score, going 30 days late can knock as much as 100 points off your score \u2014 and it stays on your credit report for seven years. The damage gets worse if you let the account slide to 60 days past due, 90 days past due or more. Your score can recover, but it will take time. Catching up on that account, and keeping all other payments up-to-date and balances low, can help.<\/p>\n<p><strong>Raiding retirement funds to pay debt:<\/strong>\u00a0Most people don\u2019t want to file for bankruptcy. Almost half of Americans say they would not file no matter how much credit card debt they had, according to a\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/credit-cards\/americans-relationship-with-credit-cards-its-complicated?utm_campaign=ct_prod&amp;utm_content=870923&amp;utm_medium=wire&amp;utm_source=syndication&amp;utm_term=anne-stanleymarketwatch-com\" class=\"icon none\">recent study<\/a>\u00a0commissioned by NerdWallet. Bankruptcy attorney Roderick H. Martin of Marietta, Georgia, says some of his clients have tapped \u2014 or even emptied \u2014 retirement savings in a desperate attempt to stay afloat. That often just delays the inevitable \u2014 \u201cthen they turn around and file for bankruptcy,\u201d he says. Retirement savings are typically protected in bankruptcy, but money already withdrawn cannot be recovered.<\/p>\n<p><strong>Cosigning a loan:<\/strong>\u00a0Aaron Smith, a financial planner in Glen Allen, Virginia, says cosigning so a friend or relative can get credit is often a mistake. \u201cMy personal and professional opinion is if they can\u2019t get it on their own, there must be a problem,\u201d he says. If the primary borrower doesn\u2019t pay as agreed, it can leave both your relationship and your credit in tatters. Even if the borrower repays as agreed, remaining on the loan can limit your borrowing capacity. Before you cosign, ask if you can be taken off the loan at some point.<\/p>\n<h6><span class=\"ez-toc-section\" id=\"Sometimes_doing_nothing_is_the_mistake\"><\/span><strong>Sometimes doing nothing is the mistake<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p>We may think we\u2019re too busy to trouble ourselves with fine print or financial chores. Either can come back to bite us.<\/p>\n<p><strong>Not checking your credit:<\/strong>\u00a0\u201cI think checking your credit is like going to your dentist for a cleaning,\u201d says Elaine King, a certified financial planner and founder of the Family and Money Matters Institute. \u201cYou need to make a habit of doing it. If you wait too long, there can be some rotten stuff there.\u201d<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>A credit report isn\u2019t exciting reading; it\u2019s a summary of your past handling of credit. But \u201cboring\u201d is what you want \u2014 anything you didn\u2019t expect to see is worth investigating in case it\u2019s an error or a sign of fraud. Through April 2021, you can get a free credit report weekly from the three major credit bureaus by\u00a0using <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.annualcreditreport.com\/index.action\" class=\"icon none\">AnnualCreditReport.com<\/a>. Plan to check at least annually, and more often is better.<\/p>\n<p><strong>Ignoring the details:<\/strong>\u00a0Not knowing your credit cards\u2019 interest rates or when a 0% interest rate ends can cost you.<\/p>\n<p><strong>More:<\/strong> Millions of Americans are in \u2018survival mode\u2019 \u2014 beware, decisions made in this frame of mind can make or break you<\/p>\n<p>Knowing interest rates can tell you which card to use when you\u2019re paying for a new transmission and need to carry that balance for a while, for instance. Knowing when a teaser rate ends can help you ensure you\u2019ve paid off the balance by then. It\u2019s important to read the fine print. Some cards \u2014 primarily store cards \u2014 charge deferred interest if there is still a balance at the end of the introductory period. That means the \u201csavings\u201d from the teaser rate are added to your balance, wiping out any benefit.<\/p>\n<p><strong>More From NerdWallet<\/strong><\/p>\n<ul class=\"articleList\">\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/finance\/smart-money-podcast-remote-work-burnout-and-saving-for-college?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=870923\" class=\"icon none\">Smart Money Podcast: Remote Work Burnout and Saving for College<\/a><\/p>\n<\/li>\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/finance\/mortgage-refi-affect-credit-score?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=870923\" class=\"icon none\">I Refinanced My Mortgage. Here\u2019s What Happened to My Credit Score<\/a><\/p>\n<\/li>\n<li>\n      <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.nerdwallet.com\/article\/finance\/a-new-set-of-shopping-tips-in-the-pandemic?utm_campaign=ct_prod&amp;utm_source=syndication&amp;utm_medium=wire&amp;utm_term=anne-stanleymarketwatch-com&amp;utm_content=870923\" class=\"icon none\">A New Set of Shopping Tips in the Pandemic<\/a><\/p>\n<\/li>\n<\/ul>\n<p><em>Bev O\u2019Shea is a writer at NerdWallet. Email: boshea@nerdwallet.com. <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>: @BeverlyOShea.<\/em><\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Bev O\u2019Shea\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Bev_OShea\"><\/span>Bev O\u2019Shea<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21005575-02D4-D4B5-4572-D19D379B6855%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 5 credit mistakes that can come back to bite you &#8221; The worst offenses, and why they hurt the most This article is reprinted by permission from NerdWallet.\u00a0 Some credit mistakes are a lot worse than others. Little ones, like paying a credit card bill a day late, may cost you a penalty fee,&#8230;<\/p>\n","protected":false},"author":1,"featured_media":140877,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-140876","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/140876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=140876"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/140876\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/140877"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=140876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=140876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=140876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}