It’s been an incredible journey. I have learned so much being a parent, and after all these years and all the kids I have come across…I’ve learned that parenting is one of the most important jobs we will ever have.
While I’m on the subject of parenting, ING DIRECT surveyed over a thousand parents to find out their knowledge of what top 10 actions negatively impact your credit score. Unfortunately, only 5% were able to ace the test.
Only half of the parents were able to identify between one and five items on the list.
I know you will score higher just because you are on my list. ;)
Here is the top 10
1. Keeping a small credit card balance each month. As you know, it should be paid off in full each month.
2. Lowing your credit limit. The more credit you have, the better you look on paper.
3. Closing old credit card accounts. Some people do this because they do not want to be tempted to use the cards, but it is not a good idea.
4. Opening new credit card accounts. You do not want to do this before you are applying for a loan of any kind.
5. Never having a credit card. They have no history on you.
6. Having a short history of credit. Not long enough to see your habits.
7. Exceeding a credit limit. Not being responsible.
8. Having a lot of debt. Worries them.
9. Paying a mortgage late. Worries them.
10. Paying bills late. Worries them.
Wow! The first 8 all have to do with credit cards! Not sure if many of you know of this but…
Here is a small list of some of the organizations that check your credit score before you are accepted or hired.
If you have a low or bad credit score, you will pay the highest in rent, mortgage, and car payments.
Because your credit score is such a very important aspect of your adult life, it is important that we educate our children about what a credit score means and teach them the value of cultivating a great credit score.
I always tell my kids, when you are applying for a job, apartment, or a car loan, they will not ask you for your report card…but they will run a credit report on you!