The recent credit crunch should not be a deterrent to your credit rating. You can increase your rating even in these times by being disciplined in your credit purchases. A few easy steps will keep you on track and in good standing with the credit reporting agencies.
Equifax, Experian and Transunion
1. Get a credit card that has the lowest APR. Shop websites, such as the at the bottom of this article, to get the best rate. Many companies offer 0% on transfer balances and low monthly rates.
2. Do not carry a monthly balance. This may be easier said than done but it is the primary goal to get the most out of your money.
3. Be aware of penalties and annual fees. Penalties most likely occur when you are late on your payments. They can be severe and costly and create the exact opposite effect on your credit. Simply pay your bill on time and problems will be avoided. Annual fees vary from card to card. Shop until you find one with no annual fee.
4. Use your credit card for essentials. Make purchases for budgeted items only. This will keep expenditures at a minimum and within your ability to pay. Gas and groceries must be purchased each month so use your card on these expenditures.
5. Another good strategy is to evaluate reward cards. There are a slew of these cards offered. Reward cards include air line miles, merchandise and cash back.
6. Keep copies of all your receipts. Retailers always give you one at the point of sale. Remember to print one off your computer if you make an on line purchase.
7. Keep a copy of your credit card information in a safe place. The average consumer has 3 to 5 cards. It is impossible to remember all the card numbers, the 1-800 numbers and customer service numbers for all these cards. Record this information and keep it in a safe and accessible place.
The recent credit crunch does not mean we must stop using our credit cards. By following wise financial planning and a reasonable budget we can continue to use our credit cards to build and increase our credit rating.
No comments:
Post a Comment