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Lately, more and more people are trying for their next credit card upgrade, getting their errand cards supplanted with gold or platinum, hoping to get another thousand rewards points. These cards are a tremendous help if effectively utilized. 

However, many don’t manage them correctly and eventually lose them in the stack of bank cards anyway. Here are four mistakes that you have to avoid amid the 2022 inflation dramatically increase in interest rates on your deposits:

Credit Mistakes That Can Keep You From Saving Money on Your Loans

There are a lot of ways to save money on a loan. But there are also some big mistakes you can make that will cost you in the long run.


Here are four credit mistakes to avoid amid the 2022 inflation:

1. Not Budgeting for Your Lifestyle


Inflation isn’t just about rising prices — it’s also about rising wages. Many people don’t make a budget and live paycheck-to-paycheck. It means they’re at risk of overspending if they get into an emergency or lose their jobs unexpectedly. 


A budget helps you anticipate your expenses each month to make sure you have enough money coming in to cover them all without going into debt. 

2. Using a Personal Loan To Pay Off Credit Card Debt

If you’re thinking about getting a personal loan to pay off your credit card debt, you may want to think twice.

According to financial experts, taking out a loan to pay off credit card debt isn’t always the most brilliant move.¹

For one, it is expensive. Interest rates on personal loans can be as much as 15 percent or more. If you have $10,000 in unsecured debt at an interest rate of 13 percent, you’ll pay about $1,500 in interest over five years if you use the money to pay down your credit card balance instead of making monthly payments.

3. Losing Track of Your Credit Score

A good credit score can help you get lower interest rates on loans and mortgages, qualify for better insurance policies, and even get approved for new jobs. 


Your score is based on several factors, including how much debt you have relative to available credit. How long it’s been since you used or applied for credit, whether you pay your bills on time and how much new debt you’ve taken on recently versus older debts that might be past due.


Your score changes over time as these factors change. Sometimes upward, sometimes downward. So it’s essential to check it regularly and make sure there aren’t any errors or problems affecting your credit history that could hurt your score. If there are mistakes


4. Spending More Than You Can Afford 

It’s essential to keep track of how much money is coming in and going out each month.² It will help you know how much of your income goes toward paying for necessities such as food and rent and discretionary expenses such as entertainment and shopping trips.


If there isn’t enough left over after those two categories, or if it seems like there might not be, then it’s time to scale back spending on non-necessities. Do this until there’s more room in the budget for them later on when things have settled down.


Avoid These Credit Mistakes and Be Safe Today!

Avoid the following credit mistakes to make sure your credit score will be in top shape when 2022 rolls around. Take the time now to fix these errors and avoid hefty finance charges or even denied financing down the line.


“About Mountain West Financial and the CalPATH Home Loan Program

Mountain West Financial is the exclusive lender offering CalPATH, the #1 home loan program for Teachers, Police Officers, Firefighters, and other public employees who serve our local California communities.

You may contact our CalPATH Hotline @ 800-310-7577, seven days a week from (8:30 am to 8:00 pm) or visit our website @ A CalPATH advisor will be standing by to answer (any & all) questions you may have about the home buying or refinance process.

We look forward to working with you soon!


Joe Moore

CalPATH Division Manager

NMLS #333648″

Link to Sources used

  1. Financial literacy-guide to personal finances
  2. 6 ways to track your spending