If you’ve worked hard to achieve and maintain a good credit score, it can be upsetting to see it drop. But “life happens, and sometimes how you react is going to blow back and affect your credit score,” says credit expert John Ulzheimer. People lose jobs, cars break down and pipes leak. Credit may be your safety net.
When it’s OK to let your good credit score drop
If you’ve worked hard to achieve and maintain a good credit score, it can be upsetting to see it drop. But “life happens, and sometimes how you react is going to blow back and affect your credit score,” says credit expert John Ulzheimer. People lose jobs, cars break down and pipes leak. Credit may be your safety net.
Painful as it may be, there are times when taking actions that hurt your score are prudent for your overall finances.
WHEN YOU HAVE AN EMERGENCY EXPENSE
If you have a big, unexpected expense that exceeds your emergency savings, using your credit cards to cover it can be a decent option.
If you’ve worked hard to achieve and maintain a good credit score, it can be upsetting to see it drop. But “life happens, and sometimes how you react is going