Once you have good credit, you dont want to give it up. Instead of constantly obsessing over credit, wouldnt it be nice to just do a few things to ensure that you credit stays where it should be? There are four easy steps that every consumer can, and should take in order to keep their credit in order. Pay in cash Whenever you are making a big luxury purchase, whether it is a big screen TV or a new set of golf clubs, pay in cash. If you cant afford to pay for it in cash, you cant afford to pay for it with credit either. If you want to make a luxury purchase, save for it. Put away a little money each month towards it. It will be a lot more rewarding when you know that you actually worked for it. Budget for emergencies When making a budget, people always try to figure out exactly what they are going to spend. Unfortunately, many people do not consider things like an unplanned co-payment for a visit to the emergency room, or car problems. Little emergencies like these can really add to your debt if you dont plan for them. Always put aside money in your budget for emergencies and hold onto it. Say no to credit increases Quite often, when a person has good established credit, credit card companies will send you credit line increases. This is a way to keep you as a customer and to show that they recognize your timely payments. Dont do it! If you have low or no balances on your credit cards, then why do you need more credit? The more credit you have, the more you can spend, and the more debt you will go into. As previously stated, credit cards are not for luxury purchases! Get a Financial Check-up Finally, when you want to make sure everything is alright with your health, you get a checkup. Your credit deserves the same type of attention. Pull a copy of your credit report and check everything. You might find that you have been reported for something you shouldnt have, or that someone has possibly stolen your identity. Or you might find nothing wrong. Either way, it is best to make sure things are OK, so your credit is not unknowingly being ruined. |
