Don’t Kill Your Credit


Pay attention to your credit so that when you need it, it will help you get the best terms when you want to make a large purchase.

It’s very common to find a error on your credit report. A good practice is to review your free credit reports from Experian, TransUnion and Equifax once a year at www.AnnualCreditReport.com. Take the time to correct any mistakes that you find.

Another problem is making late payments. One 30-day late payment could be enough to give you a higher interest rate or even be denied a loan. Payments have a due date and even when they allow a few days before a late fee kicks in, if it isn’t on-time, it is late. Set up automatic payments with your bank so that you don’t have this worry.

Maxing out credit cards is another big problem. Ideally, you want your outstanding balance of no more than 30% of your available credit. As your percentage of available credit decreases, your credit score will go down.

Bad credit can not only keep you from getting the loan you want, it can raise your rates on the insurance you buy. In a study released by the Consumer Federation of America, people with good credit paid less than people with average and poor credit. Their results indicate that some customers with poor credit scores were charged about twice as much as those with excellent scores.