Even financially savvy consumers and business owners can fall into credit traps. Week 3 of National Credit Education Month highlights common pitfalls—and how to avoid them.

Common Credit Mistakes

  • Missing Payments
  • Maxing Out Credit Cards
  • Applying for Too Much Credit at Once
  • Ignoring Credit Report Errors
  • Co-signing Without Understanding the Risk

These actions can lower credit scores and make borrowing more expensive in the future.

Recognizing Predatory Practices

Be cautious of:

  • High-interest payday loans
  • “Guaranteed approval” offers
  • Upfront fees for credit repair

If you encounter suspicious financial practices, resources from the Federal Trade Commission provide guidance on consumer protection and reporting fraud.

Identity Theft Awareness

Credit education also means protecting your identity. Monitoring your credit and responding quickly to suspicious activity can prevent long-term damage.

For recovery guidance and identity theft reporting tools, visit IdentityTheft.gov.

Protecting your credit is just as important as building it. This week, take proactive steps to safeguard your financial future.

Find more financial literacy resources at https://rmaintl.org/consumers/