Ways You Can Screw Up Without Messing Up Your Credit Score

Your credit can determine interest rates for loans, as well as whether or not you’ll qualify for credit in the first place. Employers also ask you to let them run credit checks on you to see if you’re reliable. So it’s in your best interests to avoid making mistakes that will ruin your credit rating.

Posting at Financial Edge, personal finance blogger Fabulously Broke puts you at ease by identifying several blunders that won’t torpedo your credit score. Here are a few of our favorites:

*Making too much or too little money. Income does not affect credit ratings.

*Late payments to utilities and phone companies. You’ll want to check with the laws and procedures in your own state, but in general utilities don’t report your payment history to credit agencies. On the other hand, if your bills go to collections, a collections agent will tattle on you.

*Checking your own credit. Credit checks from outside sources make it seem as though you may be applying for more credit, but checks of your own credit won’t draw red flags.

*Having loans with high interest rates. It’s your credit rating that affects your interest rates and not the other way around.

Check out the rest of the post at the link below for other mistakes that won’t damage your credit.

For more information about free credit reports, go to the FTC at FTC.gov/freereports
8 Slipups That Won’t Hurt Your Credit Score [Financial Edge]