The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
  • Building Wealth
  • Investing
  • Credit Scores
  • Student Loans
  • Paying for College
  • Saving Money
  • Real Estate
  • Credit Card Debt
No Result
View All Result
The Money Coach
  • About
    • Meet Lynnette
    • Media Kit
  • Get Help
    • Money Coach University™
    • Books
    • Financial Coaching
    • Speaking
    • The Money Coach Recommends™
  • Contact
No Result
View All Result
The Money Coach
No Result
View All Result

4 Credit Tips for National Get Smart About Credit Day

Lynnette Khalfani-Cox, The Money Coach by Lynnette Khalfani-Cox, The Money Coach
in Credit Scores
Reading Time: 4 mins read
The Money Coach
29
SHARES
490
VIEWS
Share on FacebookShare on Twitter

National Get Smart About Credit Day occurs this week, and takes place annually on the third Thursday of October. While it’s not a federal holiday, in some ways it should be.

For every adult in America, your credit is an enormously important factor in your financial health and wellbeing. Your credit rating affects everything from your ability to get a job to your chances of getting approved for a mortgage or an apartment rental.

The American Bankers Association Education Foundation launched National Get Smart About Credit Day back in 2003 in order to highlight the need to teach youth and young adults about the importance of good credit habits. The idea is that if we teach people the steps to healthy credit at an early age, they’re more likely to carry those positive credit behaviors throughout their adult years.

So in honor of National Get Smart About Credit Day, here are four tips to help you avoid unhealthy credit behaviors.

  1. Don’t charge excessively on your credit cards

Running up too much debt on your credit cards doesn’t just lead to extra interest payments, it also negatively impacts your credit scores. Under most credit scoring models, including the FICO credit score and the VantageScore, the amount of debt you carry on your credit cards is a big factor in the calculation of your credit score.

(Related Reading: What is the VantageScore and How Is it Different From The FICO Score?)

To avoid lowering your credit score, never max out your credit cards. If possible, don’t charge more than 25% to 30% of your credit card limits. And to have the highest possible credit scores (i.e. scores of 760 to 850 points), limit your credit card balances to less than 10% of your available credit limits.

  1. Don’t co-sign for someone else’s loan

The problem with co-signing a loan is two-fold. First, you could wind up having a personal falling-out with a relative or friend if they don’t repay a loan, or repay you, as agreed. Additionally, loans that you’ve co-signed for can negatively impact you in multiple ways.

If the primary borrower is late on the loan or defaults on it altogether, you’re on the hook financially, and from a credit standpoint. That late payment or default makes you responsible for the debt – and you take a hit to your credit score as well.

Furthermore, even if the person for whom you’ve co-signed does repay the loan, your ability to get future credit could be diminished.

That’s because if you later need a loan – say, to buy a car or a home – lenders will look at your overall debt-to-income ratio, including loans for which you are a co-borrower or co-signer. If your debts are deemed to high, your loan could be denied.

  1. Don’t pay any bills late. Ever.

The number one factor in your credit score is how well you pay your bills. So anytime you are 30 days or more late in paying a credit obligation, such as a credit card bill or a mortgage, that late payment lowers your credit score.

Do yourself a huge credit favor: avoid paying any bills late. Even if you can only afford to make minimum payments, that’s better than having a late payment on your credit report.

  1. Don’t ignore your credit reports and credit scores

If you’ve had credit problems or credit setbacks in the past, be honest for a moment.

Have you ever just ignored your credit report or maybe put off getting your credit score because you were scared to see how low that score might be, or you just didn’t want to see the damage on your credit report?

Well, putting your head in the sand and acting like an ostrich isn’t going to solve the problem. Only action will.

So no more procrastinating: Just go online to annualcreditreport.com and get your free credit reports.

Under federal law, you can visit the annualcreditreport.com website and get the free credit reports you’re entitled to receive once every 12 months from Equifax, Experian and TransUnion, which are the three main credit bureaus.

You should also take a peek at your credit scores. If you don’t have a credit card that provides your credit scores free of charge, you may have to pay for your credit scores. But it’s worth it to know where you stand.

Alternatively, if you don’t want to pay, MyFICO offers a credit score estimator and calculator to help you estimate your FICO credit score.

Credit Karma also a credit simulator, which is powered by TransUnion. Either tool will give you a very good indication of your credit score range in about two minutes.

Paying attention to your credit rating and avoiding bad credit behaviors will go a long way toward boosting your credit scores and improving your overall credit health – on National Get Smart About Credit Day, and all year long.

Tags: National Get Smart About Credit Day
Previous Post

Advice For College Students To Save Money On Laundry

Next Post

Financial Planning Days: Get Free Money Help In Your Area

Related Articles

protect your credit score
Credit Scores

How to Protect Your Credit Score After Job Loss 

by Lynnette Khalfani-Cox, The Money Coach
Best Way to Check Your Credit Score Using Apps
Credit Scores

The Best Way to Check Your Credit Score Using These 4 Apps

by Guest Blogger
Credit Scores

DTI or Debt-to-Income Ratio Explained

by Lynnette Khalfani-Cox, The Money Coach
4 Summertime Risks to Your Credit Score
Credit Scores

4 Summertime Risks to Your Credit Score

by Lynnette Khalfani-Cox, The Money Coach
credit score drop
Credit Scores

What to Do If Your Credit Score Drops Unexpectedly

by Lynnette Khalfani-Cox, The Money Coach
credit score
Credit Scores

The Impact of Closed Accounts on Your Credit Score

by Lynnette Khalfani-Cox, The Money Coach
credit score changes in 2015
Credit Scores

Changes That May Impact Your Credit Score

by Lynnette Khalfani-Cox, The Money Coach
close credit card account
Credit Scores

Impact of Closing an Account on Your Credit Score

by Lynnette Khalfani-Cox, The Money Coach
financial mistakes
Credit Scores

Financial Decisions That Can Hurt Your Credit Rating

by Lynnette Khalfani-Cox, The Money Coach
Next Post
Financial Planning Days

Financial Planning Days: Get Free Money Help In Your Area

About

Lynnette Khalfani-Cox, The Money Coach®, is a personal finance expert, speaker, and author of 15 money-management books, including the New York Times bestseller Zero Debt: The Ultimate Guide to Financial Freedom.

Lynnette has been seen on more than 1,000 TV segments nationwide, including television appearances on Oprah, Dr. Phil, The Dr. Oz Show, The Steve Harvey Show, Good Morning America, The TODAY Show and many more.

Quick Links

  • Money Coach University
  • Lynnette's Personal Site
  • The Money Coach Corporate Site
  • Video Portfolio
  • Privacy Policy

All information on this blog is for educational purposes only. Lynnette Khalfani-Cox, The Money Coach, is not a certified financial planner, registered investment adviser, or attorney. If you need specialty financial, investment or legal advice, please consult the appropriate professional. Advertising Disclosure: This site may accept advertising, affiliate payments or other forms of compensation from companies mentioned in articles. This compensation may impact how and where products and companies appear on this site. AskTheMoneyCoach™ and Lynnette Khalfani-Cox, The Money Coach® are trademarks of TheMoneyCoach.net, LLC.

©2009-2022 TheMoneyCoach.net, LLC. All Rights Reserved.

No Result
View All Result
  • Meet Lynnette
  • Money Coach University™
  • Books
  • Financial Coaching
  • Speaking
  • The Money Coach Recommends™
  • Media Kit
  • Contact

©2009-2021 TheMoneyCoach.net, LLC. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist