Page 40 - increase your credit score

idea that our bad scores and debt are someone else’s fault.

If you’re ever tempted to go into default on your student loans – or any loans – remember
that your credit scores will take a severe hit and your decision will end up costing you

thousands of dollars in high interest rates for accounts unrelated to your student loans.

Mortgages, auto loans and insurance will go up because of your decision to default. Our
advice? Defaulting shouldn’t be something you choose to do in protest because it hurts

you in the long run. Simply put, it’s a very costly mentality.

Chapter 9 Summary:

• Credit repair agencies can’t do anything for you that you can’t do yourself.
• Credit bureaus aren’t going to knock your score because you buy cigarettes and

alcohol.
• Carrying a balance will not help your score; paying off your balances in full,

though, will.
• Credit scores and credit cards aren’t inherently bad; they only become dangerous

when they’re mishandled.
• FICO and VantageScore scoring models have their weaknesses.

• Defaulting on student loans and other loans will cause severe damage to your credit
scores.

www.highya.com Page 40