Some of you know I run a credit card website, so I’m always interested in articles about credit and credit scores. Ran across a good one yesterday in one of my newsletters that discusses reasons why your credit scores still go down when you do everything right.

While I’m a fan of Dave Ramsey (there’s a comment to the article that mentions him), I don’t think eliminating all credit is good unless you have serious issues. Most businesses are started with credit, and credit managed correctly can be cheaper than a SBA loan or borrowing money from family or friends (with credit like this, who needs friends!)

For example, some of my credit cards (I have many, but I don’t carry a balance – don’t want the credit card companies to get rich off of my money) send out checks that allow me to take a loan for under the current rate of interest. While these are traps (especially if you charge other things on the card at the same time or later) used correctly, they are faster, easier and cheaper (maximum $50/$75 advance fee, compared to closing costs on a loan) than a conventional loan, and some of them are offered for the life of the balance.

Check out the article – it’s good to know what kinds of things affect your credit score.