09.07.07 | Credit score worries? Pay your cable bill!
The major defining feature of your credit score is how you handle the responsibility of credit. If you handle it well and pay your bill on time, your score increases and lenders are less worried about whether you will pay it back. Unfortunately, they are also beginning to look at other factors, such as whether or not you pay your electric/gas/phone/cable bill on time.
Why the change? Well, credit card companies are worried about their customers. They don’t want to have situations where someone racks up thousands of dollars in their balance and then files for bankruptcy, in which the credit card company loses as well. Therefore, card suppliers (Citibank, Chase, Capital One, etc.) are looking out for other signs of trouble paying bills. And these include the aforementioned utilities and other areas, like auto and home insurance payments. Speaking of the latter, your rates for insurance may also more than likely be tied to your credit score.
What can this do to you? If you do happen to let your cable bill lapse a few extra days, give them a call and let them know beforehand. The same goes for the rest of your bills. This is particularly important if you’ve got a credit card balance as you don’t want your interest rate to go up.