If you haven’t learned by now, your credit is an extremely important part of your life. Good credit can take you anywhere you want to go, while bad credit can stop you dead in your tracks. And no credit at all can be almost as bad as having no credit at all.
Instead of damaging your credit there are some things that you can pay attention to and then rectify in order to keep your credit in good standing. If you let your credit get out of whack you will need to get help, and it won’t be easy.
Not Paying Your Credit Card Bills
If you aren’t paying off your credit cards not only are you risking an impact on your credit score, but you also will be spending far more money on interest rates, which could even max out your credit card. Credit cards can be good for you, and for your credit, but you need to know how to properly use them in order to protect your credit instead of damaging it.
Try paying more than just the minimum payment each month to help keep down your interest rates. If you have the means it can be helpful to just pay your entire card off on a monthly basis.
Any Defaulted Loans
If you have defaulted loans from college or anywhere else they are also causing some big damage to your credit. When it comes to school loans you have options for postponing payments when you just have the money you need. Take some time to do the research so that you can get back on track and fix your credit.
Continual Bank Overdrafts
Banks do not like it when you overdraft your accounts, and a bad rep with one bank can make it harder to get help from another. If your banking skills are sub par you may not be able to get a loan and your bank is also going to hit you with some hefty fees each time you overdraft your account. Just don’t do it.
Too Many Open Accounts
Even if you’re paying your student loans, your mortgage, and have all the minimum payments paid on your credit cards, you could still be affecting your credit, especially your credit score. The more open accounts you have the less future accounts you’ll be able to open. That’s one good reason to pay off credit cards monthly, and to pay off loans of all kinds as quickly as possible.
Bankruptcy is absolutely no fun, and it can have a somewhat lasting effect on your credit. In fact, it stays on your report for seven years, and it can make it so that you can’t even open a bank account. Talk to someone in the know before you file for bankruptcy to see if you have any other options for getting out of debt.