How NOT To Ruin Your Credit Score
That all important credit rating can make a big difference to what loans you can get and how much interest you’ll pay, so these tips on ways you can ruin your credit can remind us of the best ways we can act to be sure we don’t damage our credit score, wherever possible:
- Don’t forget to pay a bill on time. Sure, if you can’t get to the post one day and your payment arrives a day late - one time only - it’s unlikely to have any effect on your credit score. But make it a habit to pay your bills on time or early.
- Don’t spend up to your credit limit. The ratio of your debt compared to your credit limits is a big factor in calculating your credit score. Experts recommend spending no more than 10% of your credit limit.
- Don’t cancel all your old credit cards. Keep one or two credit cards that you have a long history with as this will help your credit score.
- Don’t sign up to a dozen new cards a year. Ignore all the offers that land in your mail box. Stick with the cards you have and your credit score will like you a whole lot more.
- Don’t borrow money you don’t actually need just because somebody thinks it will help your credit score.
This entry was posted on Saturday, February 21st, 2009 at 5:48 am and is filed under Credit & Debit Cards. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
