Maintaining a good credit is important to your
financial life. There are people who experience poor
credit report due to neglect and improper report
reviewing. There are even others who went through the
process of repairing their credit and somehow managed
to maintain good credit after. If you do not want to
ever need a credit repair, good credit maintenance is
advisable. Luckily, simple steps can help one in
proper maintenance of a good credit.
The Importance of a Good Credit
Credit history plays in important role in determining
whether you are qualified for a loan or not. The
credit is really worth a thousand words and it says so
much about the consumer. Not only can it affect your
finance but other aspects of your life as well.
Several counselors and services agree upon on thing:
maintaining a good credit is important in leading a
fit financial life.
Most people do not realize that landlords, employers
and companies checks credit scores before making a
decision on whether or not they can grant a contract
or a job. The scores and credit report can help
companies decide whether you pay your bills on time or
if you have filed for bankruptcies. By doing so, they
can use the information on your credit report as a
future marker of your credit worthiness.
What You Can Do
Although maintaining a good credit can be quite a
challenge, there is no better way to keep you safe
from debt than by carefully following your spending
and always sticking on a budget. Budgets are important
as they can aid you in controlling your finances,
decreasing your debt and building a strong credit
history.
In the topic of managing your debt, the first thing
you can do is to keep track of your spending habits.
You can do this by creating drafts of what you spend
and track anything that you might owe. Monthly
statements should be reviewed when they arrive and
always check for any possible inconsistencies.
Additionally, always remember to report them
immediately.
To keep your account in good standing, always remember
to pay the creditor on or before the due date normally
printed on the statement. Do not skip on any payments
and strive to pay more than the minimum or, if
possible, pay the whole balance each month.
Another step you can take is not to exceed your credit
limit. The available credit is the amount left on your
credit usually represented by the difference between
your credit limit and your outstanding balance. Always
remember to maintain the balance lower than the limit
of the credit. Additionally, make sure to add any
charges you made after the closing date to your
Outstanding Balance included in the monthly statement;
doing so can help you find out just how much credit
you have left.
Sticking to a budget is also important. Typically, 10%
of your monthly income should be used in paying your
credit lines, bills or personal loans. However, in
case you are paying more, it is time to reconsider
your habits of spending. Keep out of impulsive buying
since they are especially hard to pay off.
Lastly, control your finances. It is advisable to
create a payment plan, which can help you get on the
right track. This kind of scheme should incorporate
those whom you need to pay and the amount of the
payment each month. Normally, other people limit their
credit usage until the finances are under control;
this is an excellent method of controlling your
finances.
