Get to Know Your Credit

Created on 2008-04-10 03:02:28

Articles on credit talk about ‘Feeding your credit’ what does that mean? Most people start out with student loans as the foundation to their credit history. When you begin earning you should feed your credit but do so intelligently, for example a credit card with a low rate of interest. Earn points by using it for everyday purchases when you would normally use a debit card. Track your spending and clear the balance each month, CreditCards.com shows that Blue from American Express® is a great choice for low interest credit cards as this will quickly establish good strong credit.

‘Monitoring your credit’ means just that. You can now access your credit report online with a great service such as FreeCreditReport.com. Familiarize yourself with the language in the report; it is something you will need to look at a lot in the future so you may as well become an expert of your own personal credit situation and history! If you see anything in which you disagree with, then act upon it immediately. Similarly, if you see any suspicious activity on your report such as a credit check from somewhere you haven’t been or approved, report it immediately to the credit agencies and if you feel it appropriate, also report it to law enforcement.

Experts tell you to “Nurture your credit”. It is important not to miss payments for mortgages, credit cards or store cards. Most importantly of all, pay your taxes on time. The IRS will require that you pay all taxes you default on with interest and penalties.

Be afraid of damaging your credit score, but do not be afraid to talk to your creditors. If you suddenly are in a financial hardship situation and cannot pay a bill, or all of your bills, don’t sit there with a pit in your stomach. Don’t watch the mail pile up or be scared to answer your phone afraid that creditors are calling. Proactive is the way to go. Credit card companies do listen, as do the mortgage companies, but don’t be a stranger to them. You will feel better knowing that you have protected your credit and can sleep at night by making a few calls. Another terrific resource if you fall upon financial hardship are ‘Debt-Counselors’; they can offer a plethora of services to help those in ‘credit hardship’