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Money Matters
Maintaining a Good Credit Rating
There are a few good rules of thumb to maintaining a
good credit rating. If you are able to follow them, then you will have
no trouble getting credit or keeping your balances down.
• Pay your bills on time. Even one late payment can
negatively affect your credit rating.
• Always pay the minimum amount due. Otherwise, not only
will you lower your rating, but also you will incur added fees.
• Occasionally, if not consistently, pay more than the
minimum amount due. This helps to keep your balances down, so that you
can continue to come up with the minimum payment due.
• Avoid opening several credit cards at the same time.
Many stores offer incentives such as percentages off the total purchase
if you open a new credit card with them. This has a negative impact on
your credit rating.
A few simple reminders:
• Bills include not only your credit card bills, but
also your mortgage and or home equity loans. Your payment history is a
major factor in computing your credit rating.
• It takes longer to renew your credit rating than it
does to destroy it. Paying bills late consistently does more harm than
you know. It may take up to three on-time payments before a company no
longer lists you as delinquent on payments.
• A little bit of credit card use over a long period of
time is better than a spate of large credit card use in a short period
of time.
In general, pay your bills on-time, charge only what you
can truly afford, acquire new credit cards sparingly, and enjoy the
benefits of a good credit rating!
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