Your Credit Rating

IF THERE WAS EVER a course that should be taught to every high school student before they graduate, it should be one on care and management of one's credit rating. During the course of my client interviews for a mortgage or loan, I am repeatedly amazed at how often people have inadvertently allowed their credit rating to be damaged due to carelessness with respect to paying bills. Often it is simply a matter of not paying a bill on time. The moment you pay a charge card after the due date, even if it is one day late, your credit report records that the payment was from 1-30 days late. Guess what a lender thinks when reviewing your credit report? 30 days late! Some people make payments on small card balances only every 2 or 3 months as they think it is a waste of time to make a minimum payment of only a few dollars as required on their statement. This can really ruin a credit rating in a hurry. You must make a least the minimum payment on every card every month to keep your credit rating in good standing. Also, pay at least several days before the due date. Allow time for the mail to reach the lender so your payment is recorded before the cut-off or due date.

WE ALL HAVE a tendency to run those charge card balances up into the stratosphere. Consider a consolidation loan to reduce the rate of interest you are paying — charge card rates tend to be higher than a loan!

Gary Greer, co-owner – Mortgage Plus

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