It's not only important that you pay your bills, it's crucial that you pay them on time. This does not just apply to your car or credit card bills, it applies to anything you owe a debt on. For example, paying utility bills late can impact future request for service and even require a large deposit. One late car payment (Over 30 days) will show on your credit report for seven years even though it is paid for. Not paying your rent or jumping ship before your lease expires can have long term negative impacts on your credit. So, be sure to keep your debt load down so that your expenses do not exceed your income.
Best Practice: Pay early, pay off.
10 Steps to Home Ownership: Step 3: Control Credit Balances
