Give Yourself Credit

by Tanisha Coleman (BPRW)

Thinking about making a major purchase such as buying a new car or home? Make sure your credit score is up to par! If you apply for a loan, you’ll be glad you did.

Managing your credit and having a healthy credit record is key to having more financial freedom. Whether you’re planning a vacation or dealing with an emergency situation, wise credit management ensures that you’ll have the kind of credit you need when you need it most.

Listed below are some tips from Wells Fargo for effectively managing your credit

o Keep a record of your spending habits. Keep track of written checks and ensure that your statement is accurate. Review your monthly statement when it arrives, check for any discrepancies and be sure to report them immediately.

o Pay your debts. Always pay at least the total minimum amount due. Also, ensure that your payment is received by the creditor on, or before, the due date listed on your statement to keep your account in good standing.

o Avoid exceeding your credit limit. Your available credit is how much credit you have remaining (your credit limit minus your outstanding balance). Always keep your balance lower than your credit limit.

o Stick to a budget. Be cognizant of large impulse buys, as they are especially hard to pay off. Additionally, ensure that less than 10 percent of your monthly income generally goes toward paying off your lines of credit, personal loans or credit card bills. If you are paying more, you might want to reconsider your monthly spending.

o Control your finances. Create a payment plan to keep you on track. This plan should include a list of people to pay along with the associated amount to pay them. Then, make a commitment to actually pay them – on time! Also, limit your credit use until your finances are under control, and close any accounts that you do not use.

Following these simple tips will help you give yourself credit. The kind of credit that you deserve and can be proud of!