Credit Card Information
Right now the economy is so challenging that news about foreclosures, bankruptcies and store closings clutter the headlines. It is pretty obvious that these short comings ruin credit scores. But with all the real estate and mortgage news, the lime light is off credit cards. Credit cards actually create an even more sensitive risk for lowering credit scores.
Maxing out a credit card can potentially bring your credit score down 50 points. Even with the intention to make minimum payments monthly, if you max out your credit line, it shows!
Making late payments, even if it is just once can drop your score dramatically. Up to 100 points could be taken off your credit score with just one late payment. One late payment can destroy your credit history yet it takes months of on-time payments to build it back up.
People become overjoyed when they qualify for large credit lines and end up falling for the façade that they can afford the same dollar amount in expenses. Just because you qualify for a $10,000 credit limit doesn’t mean you can afford to purchase $10,000 in items.
The higher your credit card limit, the more responsibility you have to live up to. More temptation to spend, more reasons to be late in a payment and more for creditors to watch.
Credit cards should assist you and work toward your advantage of building better credit. Don’t let your credit card control you, take control of your credit with the support of Innovative Credit Consultants!
Receive a free credit report analysis and a free credit repair consultation. Do you understand what your credit cards have done to your credit score? Get personalized attention and speak to a credit repair specialist today. Boost your credit score and learn how to establish better credit.
- Understanding Credit:
