He shoots…he scores! ⛹🏻 If you're planning on buying a home or a new car, having a stellar credit score is a priority. When your credit score is at the top of the leaderboard, it's a slam dunk for lenders. 🏀💸 High scores make you a financially responsible MVP! We'll put your trophy in the mail. 🏆
Even if you've been staying in your lane by paying your bills on time, you could still accidentally hurt your credit score. Falling victim to these hidden traps could take you out of the game and make you a bench rider. #badsportspuns
Here’s Five Fast Facts on how you could be hurting your credit score :
- 🚧 Closing Time - If you just paid off a nagging credit card, congrats! But don't close the account completely. When you close out an account you've had, you negatively impact your overall credit history. You also reduce your overall available credit, which contributes to a high score. Instead, make a small purchase each month and pay it off right away to keep the line open.
- 🦹 Identity Crisis - Hackers are getting smarter by the minute. One day, you could be the Credit King, and the next day a shady character could open up 233975 accounts in your name and take away your crown! Check in on your credit history regularly and report any funny business ASAP. If your budget allows, invest in an identity protection service.
- ✅ Just Checking - Checking your credit score on sites like Credit Karma doesn't cause any harm. However, applying for credit just for funsies could. Applications for new credit cards or loans are considered "hard inquiries" and can lower your score. They also stay on your credit report for several years. Avoid this by only applying for credit when it's 100% necessary.
- 📈 Running Up That Bill - Paying your credit card bills on time each month is a must. While you're at it, make sure your overall balance is as low as possible. Lenders like to see borrowers use less than 30% of their overall available credit. Any more than that and you run the risk of lowering your score. Try your best to pay off the entire balance of your cards each month.
- 😵💫 Error Message - Even if you're a pro at managing your credit, errors happen. In fact, one in five Americans has an error on their credit report. Keep up with your credit history by checking your report on a regular basis. If you notice an error, make sure you report it to the major credit bureaus.
🔥Bottom line: Even if you're financially fit and responsible, managing your credit cards can be a slippery slope. 🎢 With Americans incurring more household debt than ever, it's a great time to check in on your credit score and make sure everything's kosher. Keeping your debt manageable pays off in the long run, especially when you're ready to buy your dream home…or *gasp* maybe an electric vehicle?!
Are you a Credit King or Queen? Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
