Charlotte, NC (PRWEB) July 13, 2010
Recent college graduates saving up for large purchases like homes and vehicles should remember that today’s small credit mistakes can make a high credit score plummet and affect one’s ability to obtain future loans. Satellite Star Internet, an authorized dealer for HughesNet™ – the leader in satellite Internet – suggests avoiding these credit mistakes to maintain a favorable credit score.
1. Making late payments: Payment history makes up about 35 percent of a credit score and even a library fine from an overdue book can appear in reports. The frequency of late payments and how long they are overdue also influences the score. Remember to pay bills on time or schedule payments for the same time each month.
2. Not checking reports: The people that run the three major credit reporting bureaus can make mistakes too, so check credit reports at least once a year. Each consumer is legally entitled to a free annual credit report from each bureau and the actual score is available for $16. Be careful about requesting free reports on websites; http://www.AnnualCreditReport.com is the only website that makes free credit reports available without strings. Dispute any credit report errors by sending in written requests and following up on them.
3. Closing accounts: Just because the credit balance is paid off doesn’t mean the account is useless. Closing a credit card account wipes its history from a credit report seven years later and erases its former holder’s hard financial work. Instead, pay off a card’s entire balance and use it every few months to keep it on credit reports.
4. Using cash instead of credit: Paying with cash or a debit card may seem like a smart and convenient choice. However, this practice leaves lenders little or no information about one’s credit-worthiness, which defeats the purpose of a credit score. Avoid paying credit card interest by paying the full bill each month.
5. Maxing out cards: A credit score relies upon the ratio of one’s debt to available credit. So prevent running up amounts on credit cards and pay maxed cards down to less than 30 percent of the available credit amount.
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