The average person starts out with a system of accounting consisting of putting their ATM card into the machine until the money stops coming out. When that happens, they duck and cover. "Sooner or later it would all work out and everyone will get their money," or so the thinking goes.

Those credit cards that were so easily pulled out when it came time to pay for a purchase were not so easily paid off when the bill came in the mail. If you're like most people who tend to operate this way, you'll find yourself getting denied for additional credit cards, car loans, and other forms of credit.

Remember, a credit reporting agency, a mortgage broker, and a lender cannot delete credit information once it is in one or more of the credit reporting agencies. This must be done directly by the borrower. See How To Correct Mistakes on Your Credit Report.