The Credit Info - Repair Kit by Scott McKay - HTML preview

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6. Maintaining Good Credit

Once you have established a good credit rating and you’ve had a solid

 

credit history for over a few years many people tend to forget that it’s not such a

 

good thing to have a lot of credit out there. There is such a thing as too much

 

credit and it can actually hurt your credit score if you are not careful. I’ve even

 

had to decline applications for people with perfect credit scores just because they

 

are clearly overextended.

 

A very important thing for someone with good credit not to do is to go

 

crazy with credit cards. It is so tempting to open a different line of credit

 

everywhere you go because most companies give you a discount or incentive to

 

shop at their store using their line of credit. Another thing to watch for is taking

 

advantage of no payment options. A lot of people will keep purchasing and

 

charging new items forgetting they have a debt that still needs to be paid. If you

 

do decide to take advantage of a store’s credit card for a discount and then you

 

pay it off you should consider closing it if you don’t intend to use it again.

 

Another thing to remember about keeping your good credit is that it looks

 

much better to have two lines of credit half-way borrowed against than having

 

one of your lines of credit maxed out. Once you have established a good credit rating you should start to get offers in the mail from your credit card companied

 

to transfer your other credit card balances to their at a discounted rate. I always

 

recommend closing the cards you are paying off to keep yourself from being overextended.