One of the most important lessons regarding your finances to understand is to preserve and protect your credit score, as it can affect many directions and decisions throughout your life. "Your credit score is one of the most important numbers in your financial life; it goes a long way toward determining whether or not you'll be approved for loans and lines of credit, along with the interest rates you'll pay," Ted Rossman, senior industry analyst at Bankrate.
With all this on the line, protecting your score should be a top priority. Even those with favorable credit scores and those who practice sound money habits can sometimes make foolish choices regarding their credit scores. To put you in a better position to not make these foolish choices, read more about what you shouldn’t do. Co-signing a loan Rossman said co-signing a loan is "potentially a very big mistake" as people don't realize this is a sizable legal commitment.
Utility bills, rent and other monthly payments can be reported to credit bureaus. Set up calendar reminders for those due dates so you don’t miss payments," she added. Failing to monitor your credit Get into the habit of glancing at credit reports and bank statements so you can report fraudulent activity ASAP, she said.
Signs of identity theft can be as subtle as an unexpected small charge, or as glaring as an unfamiliar account opened in your name," said Rathner. Spending to get rewards when you have debt Chasing rewards can be a slippery slope, particularly if you have debt. "The interest you’re paying on that debt can wipe out the value of any rewards you’d earn in just a few months," said Rathner.