Identifying common credit mistakes

Since the recession, many consumers have buckled down with their finances and focused more effort and attention to paying down their debt. However, a recent report from WalletPop says a number of individuals continue to practice a few unwise money moves, which may be impeding them from seeing the positive results they've been working for.

The report said one of the most common errors consumers make is assessing their financial situations without knowing their credit scores. This three-digit number is used by a number of entities, from insurance companies to credit card lenders, to gauge how well you manage your credit. Even potential employers will review your credit score, though they generally will do so to determine your character and ability to manage money.

Knowing your credit score is important, but so is using it to your advantage. The report says too few consumers are spending enough time researching and reviewing loan offers. Contacting various companies will help you find the provider willing to offer you the lowest rates. With 15-year and 30-year mortgages, more favorable interest rates may save you thousands of dollars over the life of a loan.

Even if you know your score, the number you have may not be an accurate reflection of your credit history. This is because your credit report may include questionable examples of unfair credit reporting that may lower your credit standing. If you encounter such problems while reviewing your credit report, you may benefit from seeking credit repair.