Building your credit score is one of those endless tasks. From the age of 18, most people begin building their scores with their first credit card. However, it’s not always easy to keep your score up, and when it gets bad, it affects almost every aspect of your life where finances are involved.
Make sure you keep your credit safe and steady. Ask the professionals at Valley Federal Credit Union how, by calling our Harlingen and Brownsville credit union locations at (956) 546-3108.
Here are five things you must avoid to keep your credit score from hurting you.
- Maxing out credit cards. Sure it seems like fun at the time, and we always plan on paying it back, but maxing out shows banks that you’re desperate for funds and if you have a huge balance that shows financial irresponsibility.
- Closing your accounts right after you pay off your balances will also ruin your credit. This decreases the percentage of available credit and this is a huge contributor to how your credit score is determined.
- Co-signing may seem like a nice favor to a friend or loved one, but if the person you co-signed a loan for is irresponsible, chances are their habits will negatively affect your credit score. Make sure payments are kept up and you trust this person with your life, because that is essentially what your credit is.
- Do not make late payments. Sounds so simple and it really should be. If you’ve taken on financial responsibility and can’t keep up with your payments, then you should think twice about having a credit card or account at all. Late payments can ruin your credit score.
- Medical debt is also a huge problem for some people. If you have insurance, it’s easy to think you’re always covered, but there are some occasions when you pass along your bill, and it just sits there waiting for someone to claim it. This can cost you a nice amount of credit points, so make sure you stay in contact with your insurance company and doctor’s office.
Remembering how important your credit score is to your finances is very important. A few mistakes can cost you a lot, and digging yourself out of a bad credit score can take years. Avoid the struggle.
The team at Valley Federal Credit Union is highly skilled in giving credit guidance. Contact VFCU at (956) 546-3108 and become a credit union member at our Harlingen and Brownsville locations.