A client’s credit score is a major factor that determines his creditworthiness when applying for a mortgage.
With the average U.S. household having nearly $8,000 in credit card debt according to the Federal Reserve, chances are many people could be committing a bad credit habit that is hurting their credit score.
Here are 4 habits to avoid that will keep a client’s credit score healthy:
1. Paying late: Late payments cost you fees that add up, can make your interest rate go up and your credit score go down.
2. Making only the minimum payment: Charge only what you can afford to pay off at the end of every month. The interest will add up if you only pay the minimum amount.
3. Maxing out a card: Maxing out negatively affects your debt-to-available-credit ratio, which is a factor in your credit score.
4. Having too many cards: Most experts recommend having two credit cards, as it can be easy to miss a payment or max out if you have too many cards to keep track of.
To view more bad credit habits, visit the full blog post here.
Do you have any easy tips that help you keep up with your credit payments?
Ilyce Glink is the author of several books, including 100 Questions Every First-Time Home Buyer Should Ask and Buy, Close, Move In!. She blogs about money and real estate at ThinkGlink.com, The Equifax Personal Finance Blogand CBS Moneywatch She is Chief Content Strategist at RealtyJoin.com, a community for real estate investors.
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