A person’s credit score can often seem like a double edge sword.  It is common knowledge that being financially responsible and paying your bills on time can often get you a high score.  By being aware and scrupulous of their bills, loans, and credit cards, individuals can earn themselves an admirable credit score.  A good score, in turn, will grant them the privilege of getting good interest rates on auto loans or a mortgage.   But the very benefits a good credit score can get consumers can also hurt their numbers as well.  Frequent inquiries to your score when you apply for a new loan or more credit can result in point deductions from your credit score. 

Consumers are using their own methods to manipulate their scores in their favor.  By creating their own secured loans, they can quickly increase their credit scores.  By making a large transaction on your credit card, a credit score can initially drop about six points.  However, if that same purchase is paid off in full within a month’s time, your score can increase as much as twenty points.  A transaction is considered large when it is over eighty percent of your credit limit. 

Though we are often taught that credit card debt is bad, there is undeniably certain form of credit card debt that is essential for some individuals to have.  Some debt is crucial for individuals to maintain an adequate amount of financial buying power.