Do You Know How Important Your Credit Score Is? Key Points

Do You Know How Important Your Credit Score Is

? Here Are a Few Key Points to Remember

Here are some important ways to protect your credit that you do not want to miss or ignore. Financial success in the economy we live in today depends on your financial education. There is a world of information available to you and educating yourself about finances is probably something you did not get in school. Take the time to learn what you need to know.

Mortgage payments are probably one of the worst forms of credit to be late on. Making your mortgage payment late can really damage your credit rating. It is imperative that you keep your mortgage payments current at all times. This is becoming even more important in the economic times that we are living in now. Just being approved for a mortgage in today's market is a serious under taking. The fear of collapse that the banks have experienced in the last two years has had an effect on who, they are willing to lend money to. A large factor in this decision making process is your credit score.

Running up your home equity loan. This falls into the too much credit category. Home equity loans should be preserved for emergency funds or home improvements that will actually increase the value of your home. Not having a home equity line is probably the best idea. It seems when families have a home equity loan there is always a reason to dip into it. If it was not available we would likely just go with out or find another way to pay. Putting more debt on your home only

Going over your limit. Credit card limits are very serious business. If you exceed your limit you

will probably be hit with a rate increase on your card as well as a negative impact on your credit rating. Most companies have it in there agreement that they have the right to increase the rate on your card if you exceed your credit limit. The credit card companies are probably hoping that you will exceed your limit because it then allows them to make more money on interest.

Credit checks. Every time someone checks your credit your credit rating goes down. There are a few minor exceptions to this rule but always remember that when you apply for credit whether you receive or not it may affect your credit rating. Credit is a privilege and should not be abused. If it is abused it most definitely will come back to haunt you one way or another.

The number one problem that consumers get into is simply having too much credit or liabilities and not enough assets. Assets are the key to financial success. Educating yourself on financial success is the first step to eliminating your liabilities and building wealth instead of debt.

by: Suzanne Manziek

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