Facts And Falsities About Fixing Your Credit
Source: LeoPatrizi / Getty
Avoid shiny object syndrome
Humphrey mentions those solicitations you might get in the mail that seem pretty enticing, like “Spend $3,000 in the first 90 days and get $500 cashback!” Or, what about the times you already have a card, and they keep increasing your limit? Humphrey says many people just think, “Well, the money is there, so I’ll use it!” Not a good idea. “A lot of people, when asked, say ‘I had no idea how I got onto this hamster wheel! I was just paying off the minimum balance,’” she says. Whether it’s utilizing that new high limit offered, or taking a company up on an offer for a new card, hoping to earn cash back or points after spending a certain amount, she says people often don’t have a plan on how they’ll pay that off. They don’t think about how those new habits fit in with their real budgets.
