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Five BASIC Steps to More Effectively Managing Your Credit

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Five BASIC Steps to More Effectively Managing Your Credit

Self-improvement is a great thing. Reading will help expand your knowledge and can help you in many areas of your life. Exercising regularly will help you stay physically fit. Along the same lines, in an economic environment where your financial health is just as important as your physical health, there are actions you can take to more effectively manage your financial well-being. Proactively managing your credit and debt profile can significantly reduce stress in your life and can potentially save you hundreds or even thousands of dollars per month related to purchases you have either made or are preparing to make such as your home, car and household goods. Managing your credit is not hard; it just takes a little education about how the related credit systems (evaluation, scoring, underwriting, interest rate pricing, etc.) really work along a nominal amount of time throughout each year.

While each person's individual credit and debt profile should be managed in its own way, there are five basic things that everyone can do to work towards building and maintaining GREAT credit.

Applying for new credit
  • Pay your bills on time - Pay all your bills by their respective due date each month. Late payments, collections, and bankruptcies have the greatest negative effect on your credit scores and can take years to clear up. In today’s marketplace, not paying on time can both prevent you from qualifying for new loans or credit lines and can increase the interest rates you pay on cars, credit cards and your home by double-digit interest rates.
  • Avoid excessive inquiries -Every time you apply for a loan or provide your Social Security number for credit, it’s likely your credit report may be pulled. This is called a Credit Inquiry. A large number of inquiries appearing on your credit profile over a short period of time may be interpreted either as a sign that you are opening credit accounts due to financial difficulties or overextending yourself by taking on more debt than you can easily repay. Apply for new credit in moderation. A credit coach will help you identify where inquires are on your report and how to best manage them.
  • Check your credit report regularly - Don’t let your credit health suffer due to inaccurate information or fraudulent activity. If you find an inaccuracy on your credit report, contact the creditor associated with the account or the respective credit reporting agency to correct it immediately.
  • Manage your debt - Keep your credit card account balances below 30-35% of your available credit limits. For instance, if you have a credit card with a $1,000 limit, you should try to keep the balance owed below $350. A credit coach will help you identify accounts and the types of credit where these rule applies. Reviewing updated copies of your credit reports periodically throughout each year from your will help you to more effectively monitor your “debt load”.
  • Give your-self time - Time is one of the most significant factors that can build healthy credit. Establishing a long history of paying your bills on time and using credit responsibly is a key part of properly building and managing your credit. You may also want to keep the oldest account on your credit report open in order to lengthen your period of active credit use. Additionally, don’t wait until you need a new car or you’re ready to buy a house before you begin reviewing your credit and debt profiles.

The ApprovalGUARD Service - Is the first and only service of its kind. Each ApprovalGUARD customer is assigned a personal credit coach to help them understand, evaluate and optimize their credit and debt profiles. The ApprovalGUARD Service additionally provides each Full Service customer with credit reports, credit scores, continual informative credit tips and education, and tools to more effectively manage and analyze their credit and debt profiles. Go to www.ApprovalGUARD.com and use the promotion code: REMAX1 for your free 30 day, no obligation trial.

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