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Loading ...Knowing how to rack up a good credit score (and keep it intact) can actually help you save money. Big news? Common sense? Maybe a little of both.
But a recent online survey done for ING DIRECT by Harris Interactive says that, unfortunately, many Americans don’t really know how to “act” when it comes to credit scores. In fact, about 1,000 parents (with kids 17 years or younger) we asked are flat out unaware of the leading financial actions that truly hurt their credit scores. The survey asked parents to review a list of financial behaviors and correctly select the ones that would negatively impact credit score.
The result? Less than half of 1% of American moms and dads were able to correctly identify each of the financial behaviors that impact credit scores. And only 46% were able to correctly identify between 1 and 5 of these financial behaviors.
Think you can do better? See for yourself: Of the financial behaviors listed below, can you identify which negatively affect your credit score?
Click here for answers.
What does it all mean? Well, for starters, you could be overlooking some significant cost savings like lower interest rates that result by keeping your credit score in check. There’s a trickle-down effect, too: You may be unintentionally setting a poor financial example for your kids. After all, kids look to their parents for all kinds of advice. (OK, maybe not all kinds of advice, but we’d be willing to bet financial advice is still on the table.)
So, tell us, where do you shake out on the great American credit score challenge?
There are several that would impact your credit score like checking your credit score, paying bills late, bouncing checks, paying mortagage late, having overdraft protection, ATM fees, having a lot of debt, exceeding credit limit…a lot on there
@ Lesley - Checking your own credit score through one of the 3 credit bureaus will not effect your score. That would be counterproductive. Paying your bills late will only begin to effect your score if you are over 30 days late. However, you will end up paying fees and/or higher interest. Same with loans and mortgages. Having the overdraft line of protection also will not negatively effect your score if you pay it back. You may lose a few points when the application is processed. ATM fees also have zero to do with your score.
ING charges a 2% fee on foreign ATM withdrawals. While not hurting your credit score, it hurts your wallet. For a bank that advertises it’s “low fees”? Please!
@ddss - I use Electric Orange mainly like a savings account but that has immediate access like a checking account, because ING offers decent interest rates (on balances $50K and over). Other banks, such as Wells Fargo, which I use as my main checking account for day-to-day transactions, do not charge foreign ATM transaction fees. I transfer funds electronically to WF before or during overseas travel to avoid these fees.
@ddss - I use Electric Orange mainly like a savings account, but which also has immediate access like a checking account, because ING offers decent interest rates (on balances $50K and over). Other banks, such as Wells Fargo, which I use as my main checking account for day-to-day transactions, do not charge foreign ATM transaction fees. I transfer funds electronically to WF before or during overseas travel to avoid these fees.
What does having “a lot of debt” mean? What exactly is “a lot of debt.” My idea of a lot may be different than yours - or the banks. It’s not so much the total $ amount but the percentage of credit debt to your credit limit that’s important.
I think it is terrible that one cannot find any decent CD rates anywhere! There is no competative spirit among the banks. It is OK for them to charge a lot of interest on their loans and credit cards to us, but we cannot get beans on our money we are trying to keep safe in a down market….I wish ING or someone would step up and be a leader in this area. I know this is off topic, but I have a great credit score, just not a great attitude about what is going on right now. BTW, the banks don’t even care if you take your money out of their banks!
to margaret b:
If you have great credit then you probably have enough financial aptitude to earn a reasonable percentage on your money. CD’s are just about the worst place to tie up your money. And you are right about banks not caring if you keep your checking or savings with them. After all, if they really need money they go to the government!
Do a little real homework for yourself. There are always good investments out there. People need to get savvy and see the bigger world beyond the banks and the stock market. In general, any investment is buying something at a low price and then selling it at a higher price. Gain some real expertise in any market and you can do better than stocks, bonds, or CD’s. And my number one rule: **Don’t invest in anything you don’t understand***
ddss, I use ING as my main bank, but opened a money market with Capital One. Their ATM card lets me make overseas withdrawals fee free. And their credit cards don’t charge a foreign currency transaction fee either.
ING is great, but to save money overseas, go with Capital One.
After getting burned by the banks more than once, we paid off all our credit cards, cut the stupid things up, and pledged never to borrow money again! Call it going off the grid or being ‘old fashioned’, whatever, we’re going back to a cash basis, and it has greatly improved our finances and life!
This incessant fixation on all things money, including a made up rating of your credit worthiness, is nothing more than proof of our addition to money. There is more to life than a high school clique rating system of your worth.
AGREE wholeheatedly with Glen ~ the financial freedom that comes from not having debt is priceless. Learning to live below your means requires self-discipline and sometimes sacrifice but the rewards far out-weigh any “inconvenience.” I am no longer a “slave” to my finances!!
If you open multiple credit cards (for example: 2 cc’s) and consolidate both into one, will your credit score be affected? (Assumptions: your credit history continues with the oldest credit card and your credit limit increases to the combined total.) Does anyone know?
I would hope that by polling us these questions, ING is considering adding a Credit Card feature into their banking? *crossing fingers ….*
I currently have 1 credit card with a floating balance under $1,000. I have a school loan that I pay regularly, on time. This past year I canceled another CC because I continued to see a decrease in credit limit even though I routinely paid at 33%-50% of the balance on time, every month. I called to inquire and was told they received a report from a credit scoring agency that I have “bad credit.” The bank would provide me with NO DETAILS! I was instructed to contact the credit agency. In order to speak with a human being, i had to first “sign up” by providing all sorts of private information AND pay a small fee! BS! Has anyone else experienced this? Any thoughts?
@Finchy, you don’t have to pay a fee to get information about your credit score. You can go to annualcreditreport.com and get it free. Do not fall for the ones similar to this like freecreditreport.com..
Mel,
Yup. Debt is a terrible burden. CCs are only a good thing for those who are committed to paying them off, in full, every month. Since we do that, our CCs actually work in our favor, giving us a small % back. Although I have heard that having a CC makes you spend more than you would spend if using cash.
Odd how folks that pay off each month are considered “undesirable” or at least “less desirable” than those who don’t pay their debts each month …
Thanks Crispy, I have been doing the same (to my CU) after getting stung by ING, not realizing that they would charge 2% on foreign ATMs.
Scott: Capital One will be my next credit card to apply for. Thanks
pay your bills on time and pay more than the minimum due
pay bills on time and pay more than the minimum due pay off balances leave them open
@Scott…I heard about Capital One’s no-foreign-transaction-fee card and applied for one. They gave me some lame excuse that I wasn’t paying off my mortgage fast enough…declined. Say whaaaat? I not only pay the amount due, but give them several hundred extra a month to get the principal down…every single month for the last 7 years! I have a 760-780 credit score and many other cards with high limits. Never been late with a payment, ever. Anyway shortly after I applied for and got an Amex gold card, in 30 seconds. It seems, really, that my credit isn’t bad enough for Capital One to want my business, since I pay my bills every month and they can’t make interest off me. After all, Capital One is known for its catering to the sub-prime market. I’ll pay cash overseas and live with the 3% fee for a car rental…the heck with them.