Credit Score

Help or Hurt?

HELP

You pay all of your credit payments promptly and on time.

HURT

You co-signed with a friend on a loan earlier and find out that the friend defaulted and didn’t pay the loan – several payments were not made.

Now YOU must pay the loan off

HELP

You are 19 years old and have just finished paying off the only loan you’ve had in your name so far.

It was a small one, but you paid it all back according to the contract terms.

HURT

You are 35 years old and have used various forms of credit – you have a few major credit cards, and several charge cards- you’re very good at paying what’s due and paying on time with these cards.

You get a discount for signing up for a department store charge card in the store you’re shopping in and decide to get another charge card.

HURT

You are late by a day or two on your credit card payment, but that’s unusual for you.

HURT

A credit card company has mistakenly reported that you defaulted on debts owed on a credit card because you have the same name as the person who did actually default.

HELP

You are in your 20’s and have one VISA credit card an you have a Chevron charge card.

Your policy has been to always pay off these cards every month.

HELP

You are in your late 20’s and have had one car loan, paid off in full according to contract terms.

You’re looking to get approved for a first time mortgage to buy a second condo, but have not used a credit card or charge card yet.

HURT

You are working full-time in your mid-20’s and getting a good full-time paycheck for the first time.

You are eligible to receive several various credit cards and charge cards now.

Because you know credit and charge cards can make life more convenient in many ways, you decide to apply for several now since you now have the means of paying the payments

HURT

Unknown as yet to you, your identity has been stolen by an internet predator who has opened a charge card account in your name and has been charging some on this card.

The predator has not made any payments yet.

HURT

You have two credit cards and two charge cards. You’re very good about on time payments an paying what is due.

One of the credit cards has an $8000 limit and because you used it to pay for your recent vacation, it shows a balance of $7980 right now. Another of your charge cards has a limit of $500 and the current balance on it is a little over the limit, $502

HELP

It is your policy with the few credit cards and charge cards you have and use to keep the amount of the balance below 30% of the limit on any one card.

HELP

You maintain a very clean credit report, and only use credit when you feel it is truly necessary.

You don’t fill out applications often, which may necessitate a business checking your credit report whether or not you borrow from them.

HELP

You make it a policy to review your free annual credit report from each of the three big agencies to check for errors and correct any you find promptly.

HURT

You have used several different credit cards and charge cards throughout your 20’s and when you find a better deal with a different institution, you often close one credit card account and open a new one which has better terms.