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A Great Credit Website for College Students (and everyone else)
By JLP | March 6, 2007
Yesterday, my local paper reprinted an article by Kara McGuire of the Star Tribune. The article was about credit scores, and included three interesting lists that she found on WhatsMyScore.org, which is a great resource for college students.
COMMON MISTAKES THAT CAN LOWER YOUR CREDIT SCORE
- Paying bills late.
- Not paying the minimum amount required.
- Keeping debt levels too high.
- Owning too many credit cards.
- Not alerting current or potential creditors if you’ve moved or changed names.
- Not periodically checking your credit report.
- Not using your full legal name in financial documents.
WAYS TO IMPROVE YOUR CREDIT SCORE
- Pay your bills on time.
- Keep your balance low in relation to your available credit.
- Make more than the minimum payment.
- Don’t open a lot of new accounts over a short period of time, especially if you have a short credit history.
- Pay off credit card debt rather than moving it around to other cards.
- Review your credit report regularly and correct any significant errors.
TOP 5 CREDIT MYTHS
- Myth 1: My score will drop if I check my credit.
- Myth 2: Once I pay off a negative record, it will be removed from my credit report.
- Myth 3: My poor score will be with me forever.
- Myth 4: Paying off my debt will add 50 points to my credit score.
- Myth 5: Closing old accounts will improve my credit score.
Good information. One that surprised me, although it shouldn’t have, was the last point in the first list. It makes sense to use your full legal name on all your financial documents. I just never thought it was that big of a deal. I guess it would cut down on confusion. For more on these, visit the facts section of WhatsMyScore.org.
Topics: Basics, Credit, Credit Cards, Kids and Money |