Myth #17 “I’m not buying a home so I really don’t care about my credit
and credit score.”

FACT: Your credit score is used for much more than applying for a mortgage and credit card interest rates. A poor credit rating could even cost you a job or a promotion. Most of the 100 largest personal automobile and homeowner’s insurance companies use your credit information to underwrite new business. It can be used to decide to insure you and determine the rates charged. Many times it can be as much as 35-40% more.

Credit Tips for Living in the Real World

For those of us who are living in the real world, things happen. It is easy to confuse due dates, forget to mail a check or even come up short on funds. The important thing is to know what to do and how to manage those small mistakes before they sink your credit entirely.

Here are a few tips to manage your payment history:

1. If you are having a rough financial month and have to miss a payment, make payments on the largest accounts, like your mortgage first. Missing a $50 credit card payment will hurt you less in the long run than a missed mortgage payment or $500 car payment.

2. If you have made the rare late payment on an account in the past, call and ask them to remove the late payment as a courtesy for being a loyal or long-term customer. Be sure to point out your good history with the company and the recent on-time payments. Ask them to consider the late payment as an exception to the rule. If they say no, call back and try to get a different representative on the phone.

3. Check your credit report for any accounts that are marked “past due.” The more recent the late payments are, the more damage they can do to your credit score. When working your way through your credit report, this is a good place to start.

4. Be careful with collection accounts. Paying a collection account can often lower your credit score. For older collection accounts, many times creditors can no longer file a lawsuit against you to reclaim their money.

If you find yourself needing assistance with your credit, Credit Strategies offers a complimentary 15-minute telephone consultation simply by calling our office. We will review your credit report with you, identify what is causing your score to suffer and discuss strategies to increase your credit score. If you are interested in scheduling your complimentary credit consultation, give us a call today at 480-502-5554.

Legal Disclaimer:
The advice provided is for informational purposes only. It is not
to be used as legal counsel or legal advice.