First ever Q&A!  E-mail me with your questions!

Q: I heard that companies like it if you pay your bills late.  Is that true?

A: Of course they like it!  They can charge you crazy exorbitant interest and late fees if you carry a balance with them.  What’s good for them, however, is NOT good for you!  This question really comes down to two things: how much interest you’re paying and the effect on your credit score.  If you pay your bills in full every month, you minimize the amount of interest you pay (and avoid late fees altogether), while simultaneously building up your credit score.  Your payment history makes up 35% of your credit score – it’s the largest single factor in your score.  Regularly paying all of your bills in full in a timely manner is key to achieving and maintaining good credit – which is important if you’re going to need a mortgage, car loan or student loan anytime soon.