Okinus Site Map

Mistakes to Avoid If You’re Trying to Build Your Credit

accounting audit

If you’re trying to build or repair your credit, you have to be extra careful. Any slip-up can set you back or even knock you off course completely. Here are some of the most common mistakes that consumers make when trying to build or repair their credit.

Late Payments

Late payments should be avoided when building credit because they can have a negative impact on your credit score. When you make a late payment, it is reported to the credit bureau, and this information is used to calculate your credit score. A late payment can stay on your credit report for up to seven years and can make it difficult to obtain new credit. If you have a history of late payments, you may be considered a high-risk borrower and may be required to pay a higher interest rate on new loans.

Using Excessive Credit

Credit is a tool that can be used to finance purchases or consolidate debt, and it can be a helpful way to build credit. However, using too much credit can be problematic. When you use excessive credit, you may find yourself unable to make your payments on time, which can lead to late fees and damage your credit score. Additionally, carrying a high balance on your credit card can be expensive as you will be charged interest on the outstanding balance.

Opening More Credit Accounts

When you’re working to build credit, it’s important to be strategic about how you open new credit accounts. You don’t want to open too many accounts at once, as this can be a red flag to lenders and can actually hurt your credit score. It’s best to open new accounts only as needed and to space out your applications so that you’re not opening too many accounts in a short period of time.

More Spending

While it may be tempting to go on a spending spree when you first get a credit card, it is important to remember that this will only hurt your credit score in the long run. It is better to keep your spending under control and only use your credit card for necessary purchases. Another thing to keep in mind is to make sure you pay your bills on time. This is one of the most important factors in determining your credit score. If you can keep these things in mind, you will be on your way to building a strong credit history.

Just Making Minimum Payments

For several reasons, making minimum payments should be avoided when building credit. First, by only making the minimum payment, you are not paying down the principal balance of the loan, which means you are paying more interest over time. Second, making minimum payments can damage your credit score, as it is a sign of financial instability. Finally, if you only make minimum payments, it will take much longer to pay off the loan, which can be costly in the long run.


It’s common for people with bad credit to avoid credit cards and bank accounts. Instead, they favor cash, checks, and debit cards that help to rebuild their credit. But what do you do if you have little to no cash and no account history to speak of? If you’re faced with this dilemma, you have to take care to avoid making the same mistakes with the credit solutions offered by Okinus Credit Solutions. Get in touch with us now!

Important Notice:

Our payment website has been updated. Please register again to continue using the payment website. We apologize for any inconvenience.


Click Here

This will close in 0 seconds