More Reasons to Strive for Good Credit

Posted by Judy Anne Cavey on Jul 11, 2011 in , , | No Comments

Jean Chatsky, financial expert, and a contributor on the Today Show, discussed how your bad credit score can be holding you back from a great deal in life…

The bad economy has caused millions of people to loose valuable standing with their credit. A score below 720 is considered too low now. Unfortunately, many Americans are saddled with scores in the 600 range–or lower. There are several ways your credit score is used and it’s not just for obtaining loans.

As you know, employers will check scores, so will insurance companies, as do prospective landlords, and the list goes on. If your score is a low one, it could mean you won’t get insurance coverage for your car–or be able to buy a car at all!

Some advice Ms. Chatsky gives:

1) Don’t close your credit card accounts

2) Don’t take on any new debt

3) Don’t stop paying your bills if your are unemployed, pay them as long as you can

4) Seek help if you do have to stop paying your bills, work with creditors for a resolution

Do all you can to keep your credit score healthy, it serves as a valuable leverage in many respects–such as if you’re looking for an apartment. Let’s say there are several people ahead of you who want the same apartment, simply by stating to the landlord you have an excellent credit score (they’ll verify that of course), could put you first in line.

Your credit history is something that follows you wherever you go, sort of like a new puppy. Be good to that puppy and it will serve you well!

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