Nick Perry explains five mistakes people with good credit make: cosigning for others, paying old debts without validation, closing your oldest card, skipping pre-approval for car loans, and mixing personal credit with business funding. Closing your oldest card can sharply lower your score by reducing credit history length.
Here's 5 things you should never ever do with good credit. Number 5, never ever cosign for someone else. Teach your kids how to build their own credit so that they don't need yours. Number 4, never pay a debt collector when something old comes on your credit report. They have to validate the debt first and prove they own it. Number 3, never close your oldest credit card. That card is the foundation of your credit history, and closing it will tank your score for no reason. Number 2, never put a down payment on a car when you have a 780 credit score. Just go to the credit union, get pre-approved for $60 grand, and use that. You'll get better rates. And number 1, never use your personal credit to build a business. Instead, use your personal credit to get business credit. So when you max out a $25K business card, it doesn't slam your personal score.
