Investing without a specific goal
It’s typical for people to invest without a clear goal in mind and to make investments just for tax benefits or to maximise returns. When making an investment, one must consider its intended use.
Long-term non-monitoring of the credit report
Many people, even those who are aware, wait until they are applying for a loan or credit card before checking their credit score. Since it displays what factors have increased or decreased your credit score over the past year, you should check your credit report frequently.
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Using too many credit cards
Repaying a line of credit with too many credit cards is not a good idea. If you apply for many credit cards in a short period of time, managing multiple cards can be challenging, can result in overspending, and can lower your credit score.
Failing to make credit card and EMI payments on time
Your credit score will suffer if you fail to make payments by the due date. Your creditworthiness may be impacted, making it more challenging for you to borrow money in the future. Decide to maintain your payment discipline in 2023.
Emergency funds are crucial yet misused
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It is more important than ever to have an emergency fund. Having additional money taken out of your paycheck on top of all your debt may be painful. An emergency fund can be a lifesaver in situations like these when worries about economic instability and job losses are on the rise.
