Do you have several maxed-out credit cards? Have you ever missed a payment on an account? Are some of your bills completely forgotten?
If you ignore your credit health, it is guaranteed to come back and haunt you.
Take it from me. The ghost of credit past almost prevented me from finding a place to live this summer. Granted, some circumstances are beyond control… I like to think that the bankruptcy I filed in early 2004 after an uninsured automobile accident resulting in hospitalization and surgery (I almost lost my eye) was justified. But what was I doing without health insurance? However you flip it, banks, lenders, landlords, and credit card companies all agree: poor credit=high risk. Your credit score has the capacity to help you or hurt you dramatically. In addition to application denials, people with low credit scores accrue higher interest rates, pay higher insurance premiums, and leave bigger deposits.
When companies present you with an offer for a credit card, don’t jump up and take it. They're not handing you money. Gimmicks such as O% interest for six months and no transfer fees are specifically calculated to lure you into debt. Regardless of how tempting it may seem, it is NOT a good idea to transfer the balance of an existing card onto a new one. Friends, debt is easy to come by and hard to shake. There is no reason to have more than one credit card!
Check your credit for free at http://www.annualcreditreport.com. Systematically go through and fix any red flags. Little things count for a lot on a credit report; the folks who are inspecting your credit want to see that you pay attention to details. Even if your payments are on time, a maxed-out credit card lowers your FICO score.
Taking good care of your credit is like taking good care of your car. If you maintain it, credit will help take you where you want to go. Neglect it, and you may find yourself stranded.
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