Keeping Score with your Credit

5x5 Credit ScoreWe finished our three-day business program today, the one that was postponed from last Saturday due to the weather. The big “wow, I didn’t know that!” moment came when we were talking about credit scores.

I don’t pay much attention to my credit score; it is what it is when you are working here and there, not holding a steady job since 1997 because of giving birth and taking care of kids. But today, I learned about something that may affect my score negatively without me realising: forgotten, unused credit cards.

Apparently I wasn’t the only one in the group who had a credit card, but never used it and thought nothing about it. My story is a simple one, one many others may have.

Once upon a time, I had a credit card. A few years later, I was offered another card from a different company. They were giving away a special gift just for signing up, so I did. Who doesn’t love a gift?

A few years afterwards, I got another card from a different company for the same reason: a gift. Like all creatures of habit, I used the credit card I always did to make purchases and only occasionally used the other two. My credit rating with these companies rose, and in turn, they raised my spending limits.

Continue reading