How to Handle Your Credit With Care
Your credit is a very powerful tool for your financial future, and it’s especially important when it comes time to purchase a home. Whether you’re a first-time homebuyer or seasoned investor, here’s how to handle your credit with care.
- Understand credit: understand what makes up your credit score and what will affect it. Here’s a free guide on understanding your credit.
- Don’t rush into credit cards: don’t start with multiple credit cards, start with one (with a low limit) and master the management, then move onto two.
- Shop around: shop around for the best credit card rates and deals, and never be afraid to ask for advice when it comes to your finances.
- Read the fine print: always read your credit card agreements closely, and make sure you understand it before you sign.
- Keep cards paid off: try to pay off your credit card balance each month, not just the minimum payment.
- Pay your payments on time: just one late payment can affect your credit in a negative way, and will also raise your interest rate in the future.
- Budget: simple advice, but set a budget and make sure you stick to it.
- Update accounts: make sure your credit card companies are always kept aware of any changes in your address, etc.
- Be proactive: if you know a payment will be late, call your credit card company right away and setup a payment schedule. In most cases, being proactive won’t hurt you, and most companies are willing to work with you.
- Control spending: at the first sign of overspending on your card(s), stop using them. If you really can’t control yourself, give your credit cards to a friend for safekeeping until you get them under control again.
To learn more about credit card smarts and information you need to know, here’s my free guide:11 Credit Card Secrets. As always, feel free to contact me anytime, or tweet me.
