Always make sure there are enough funds available before writing a check.

Will paying off a credit card balance each month, hurt my credit score?

No. It is a credit myth that paying off balances monthly affect credit scores negatively. Paying off the balance of the credit card at the end of each cycle shows prospective lenders that you are a reliable borrower. This practice will also save you money in the form of interest fees.

What is the easiest way to establish and maintain good credit?

To build a good credit rating, the easiest method is to open one credit card. Determine a credit card allowance for the month. Keep the allowance low and stick to it. Do not go over the set allowance. At the end of the month or credit card cycle, pay the balance off in full. Do this for one year. In the meantime, do not open any other credit cards. Pay all bills and loans on time, this includes utilities, cable, and cellular bills. Continue this responsible payment schedule and your credit score ranking will begin to increase.

To maintain a good credit rating, pay all bills or loans on time all the time. Be selective in co-signing any loan for another person. If there is a default on co-signed loan, your credit score will be affected negatively. Resist the temptation to open multiple credit cards.

Good credit helps to provide the means necessary for an individual to obtain a job, a home, and food. Without it, we would not be able to indulge in the luxuries of life either. Good credit is extremely important and an aspect of life that should not be forgotten or taken for granted.

Learn more about this author, Barb Hopkins.
Click here to send this author comments or questions.

• << previous page
• 1
• 2

---

Add your voice

Know something about How important is good credit??
We want to hear your view. Write now!