Good credit vs. bad
Good credit means that you make your payments in full and on time. Bad credit is just the opposite.
Good Credit
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Good credit signs
• Paying at least the minimum required payment • Paying on time • Never missing a payment • Staying within your credit limit -
Result
• Easier to borrow money • No additional penalty fees • More money you'll keep in your pocket
Bad Credit
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Bad credit signs
• Paying too little • Paying too late • Missing payments • Going over your credit limit • Having too much debt -
Result
• Difficult to borrow money • You lose money on late fees • More money spent on finance charges
If you want to have good credit, and reduce the amount of interest you'll pay, it's a good idea to pay more than the minimum amount due on your credit card each month, up to the total amount if you can.
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