Bad Habits And Credit Scores
Suffice it to say, anyone who reads this blog knows how much I abhor the concept of what I call worthless credit scores. I hate these things so much that I can’t even think of the right words to use. However, there are a number of people who really do care about this, especially those with the money that look for reasons not to give any to someone else.
CNN Money had a story recently called 5 Credit Score Killers, which of course means they gave 5 things to watch out for. I’m going to comment on those 5 things here; follow the link to see what they had to say.
This is usually bad news all around because even companies need their money to pay their bills just like we do. However, I think there should always be at least 7 days of grace, or 5 business days, though one might not need it as often anymore. Credit card bills now have to give you 21 days from the day you should be receiving it in the mail, and that wasn’t always the case. Still, it’s not something you want to get in the habit of doing.
This one is kind of ridiculous because you just can’t win. If you have a $5,000 credit card, supposedly the best scenario is to carry a balance of around $500 at all times. You’re not even supposed to pay off your card, because now you have credit you’re not using showing up on your report, which is also a negative thing.
In another post I wrote called Should I Cancel That Old Credit Card, I touched upon this one, saying that if you’re not using your credit card that you should be allowed to cancel it if you want to without penalty. After all, what you’re left with is a credit card laying around your house, waiting for someone else to steal it from you. Or worse yet, someone learning enough information about that card through other measures, then using it to ruin your credit in another way. The more credit you have out there, the more opportunities for identity fraud; not being allowed to cancel because of some stupid credit score isn’t fair.
Here’s the counter of the other one, and it proves that you can’t win for trying. Supposedly, every time you try to get credit for anything it hits your credit score and counts as a negative. If you get turned down, it hurts you even more. What the heck is that? How fair is that?
This one I don’t blame anyone for. If you decide you’re just not going to pay on money you’ve borrowed in any way, you deserve whatever you get. However, what you’ll find is that most creditors will try to work with you if you don’t have the money or don’t have all the money you’re supposed to pay on that specific date. In today’s economy, many are willing to get what they can, knowing it’s a tough market with high unemployment and the like. Never be afraid to call your creditors to ask for help; you’ll probably be pleasantly surprised what you’ll find.