22. Late Fees
People who are successful with money don’t get saddled with late fees that can chip away at their bank account balances and credit scores. Credit card companies raked in $12 million in penalty payments including late fees in 2016, according to The Motley Fool. Even paying late can cost people who pay off their balances every month, and over time that adds up even if it doesn’t seem like it initially.
Think about it. Nearly every other monthly bill carries its own procrastination penalty as well. With that in mind, think about how much you could be saving if you didn’t have late fees to pay off. Savvy spenders have found a way to avoid late fees by automating everything. If you’ve ever thought to yourself, “How can I get rich?” look into automating your payments so that you don’t get hit with fees and penalty rates.
21. Inflated Interest Rates
As of April 2017, Americans’ average FICO score hit 700, its highest mark since Fair Isaac Corporation, which created the credit risk scoring system and started tracking it. Credit scores play a leading role in determining your interest rate for mortgages, auto loans, and more. Just having a higher credit score can save hundreds or even thousands of dollars in interest over the life of a loan. However, those with substandard scores may not be able to land a loan at all. Rich and successful people keep their credit reports pristine by paying their bills on time, fixing mistakes on their credit reports, and keeping debt levels low.
If you already have a decent credit history but carry a balance on some credit card accounts, maybe consider calling card issuers to request a higher credit limit. With a higher limit, it can help to reduce your credit utilization rate, which is the percentage of available credit you are using and could help boost your score. If you have the chance while speaking with a card issuer, ask for a rate reduction. The lower your interest rate is, the faster you can blast your balances.
