Credit Mistakes to be Avoided
Some credit mistakes that must be avoided during the year to avoid damaging your credit report:
1. Neglecting Bills
Late payment or non-payment of bills can have a negative impact on your credit report
2. Usage Limits of Credit Cards
One of the very important factors that affect the scoring assessment system in your credit report is the percentage / utilization of the credit card(s) limit granted to you. When requesting a card issuance from one of the credit providers, 30% of the decision-making weight is what is called proper or convenient usage of your existing cards, which expresses the proper and healthy usage of these cards and therefore, covering your banking transactions and your obligation to pay them at their due times. This is what will be reflected in the credit report issued by CRIF Jordan to the credit providers in Jordan.
3. Signing a Loan Agreement for another Party or a Loan Guarantee
When you accept signing agreements for granting credit to another party or if you guarantee this credit, this means using your good credit history for the benefit of another party, who may not be eligible to obtain credit either directly or indirectly. Consequently, you have a great responsibility in the event of entering into such process because any delay in the payment process by the borrower will directly affect your credit assessment and show signs of declination and emergence of dues since you are the party that signed the agreement or provided a guarantee for it. The financial distress that may occur by the borrower will lead to a significant decline in your ability to obtain credit in the future. Thus, always be careful in making such decisions and try not to provide your guarantee on any loan or financing in the future, except for people whom you are sure of their ability to pay, and even if they were from the same family or relatives.
