When you think of your credit, you probably assume that it's just about any loans that you've used. By now, you know that your job and income are not part of a credit score calculation.
However, the bills you pay (or don't pay) can find their way into your credit history and do major damage -- holding up a mortgage refinancing, or making it impossible to get a loan. Those bills may be anything from your share of medical care, parking tickets, and other small expenses that have slipped through the cracks.
If somebody thinks you owe money, they can have a debt collector come after you for the funds, and that can negatively affect your credit. Even medical bills of $200 can result in serious problems with your credit.
Make sure you know who you owe, and make sure everything gets closed out properly. It's worth your while to follow up and verify that you have zero balances, even though you shouldn't have to. Another approach is to check your credit reports regularly (especially before getting a large loan).
Further reading:
- Basics of Credit Scores
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