When you need credit, you need it badly. It is always said to maintain good credit and have a high credit score. If you have ever applied for a home loan, leased an apartment, or tried to shop around for a mortgage you will know just how important this is. If you have a high credit score, you will be approved for loans with lower interest rates. Depending on the amount of the loan you can save thousands over the course of the loan. Low credit scores are often associated with loan rejections, and even when you get approved for a loan they will have much higher interest rates. This means you’ll be paying a lot of money in the end.
We’re all humans, and mistakes can be made with our credit if we aren’t careful. It happened to me. To maintain a good credit score, I have always paid my credit cards on time and with caution. About two years ago, I was moving and the credit card that I had set up on autopay increased the minimum payment without my knowledge or notification (yes, this is possible and there are laws to stop them). Since the minimum payment was not met, it was considered late. I had no idea. The company put a mark of 30 days late payment on my credit card and refused to remove the mark, even after they had removed all fees and acknowledged that there was no communication. They also apologized and admitted that it wasn’t their fault.
This one mistake, even after years of excellent payment history caused my credit score to plummet 65+ points. Once your credit drops, you realize that it will affect your entire financial life. You can’t buy a home, car, or house unless you have cash. Lower credit scores can be costly $$$. I am almost at the 750+ credit score that I had before. Our credit scores are not set in stone, and it is never too late to improve them.