Having a credit history is essential for making big purchases. Unfortunately for some people, their past isn’t quite as rosy and pristine as they’d like. In fact, many would-be car shoppers have to deal with subpar credit scores, shaky payment histories or even bankruptcy filings. 

But it’s never too late to pick up positive habits – and ignore the bad ones. Here are three credit mistakes you should avoid like the plague. 

Mistake 1: Not reading the fine print
You could think you have a great deal on a credit card, but unless you comb through all of the fine print, you’ll never know for sure. Your card could be loaded with hidden late fees, minimum balances, gradual interest rate increases or other penalties. Make sure you know what to expect before getting involved with a company. Any time a policy changes, it could be enough to disrupt your payment pattern, so work to avoid these situations. 

Mistake 2: Only making minimum payments 
Some people fall into the trap of using a credit card to buy things and then only making minimum payments on their bill. That’s a good way to quickly build up debt without reaping the rewards on your credit score. Instead, try to pay off the entire balance whenever possible. 

USA Today reported that people using rewards cards should also be motivated to make bigger payments. The cash-back rewards or perks received for using a card usually amounts to 1 or 2 percent of the total purchase, which isn’t enough to outweigh interest rates. To truly take advantage of these rewards, pay off your balance in full, or as much of it as you can. 

Mistake 3: Doing nothing with credit cards
If you have credit cards but you aren’t doing anything with them, then you aren’t building credit. That means you’re probably paying start-up fees without getting any of the benefit. Start by opening an account with one card and using it for smaller purchases, paying off the balance immediately. Eventually you can work your way up to multiple cards and major buys. 

Not sure if your credit has you able to buy a used car? Let the experts at NJ State Auto Auction help you. The lot has hundreds of Carfax-certified cars, trucks and vans to choose from. Once you find the vehicle that works for you, the in-house financing team can sort through your options and figure out the best possible plan.