Smart Credit Management Tips
Credit management in large companies is a highly skilled job that takes qualifications and experience to handle successfully. However, managing your own credit is much easier, and if you follow these few tips it will be even simpler.
Schedule Your Payments
Schedule your payments so they are made as and when they are due. Even one late payment can affect your credit rating, so it is better to try and avoid that happening. Scheduling them will also help you to budget your money, as you will know exactly what has to be where and for what purpose.
Automatic payments are a good way of handling this so that you do not have to worry about making a payment on time. Set the date of the payment about 5 days before it is actually due, then it will have time to land on your account with the creditor. Paying it on the actual date can mean it will show as a late payment, as often they can take a few days to be credited to your account.
Pay More Than You Should
If you pay more than the minimum payment on any debts, this will give creditors the impression that you are a responsible person who wants to get the debt cleared. With credit cards particularly, if all you ever pay is the minimum they ask for, the debt will take years to clear. Just a few pounds more each month will make a difference, and the balance you owe will come down surprisingly quickly.
Try Not To Go To Your Limit
Keeping your credit cards below their limit is a good idea for more than one reason. If you do not have an emergency fund, and a disaster happens, it gives you something to fall back on, other than your finances, if the need arises. Also, anyone checking you out for credit purposes will look at you much more favourably if you at not at your limit.
Look Before You Buy
If you need to buy a major item, look closely at your finances before you buy. For instance, if it is another car you need, you should check out a vehicle payment calculator to see what your monthly payment would be. The same applies to any other big purchase. Always look first to see how much the monthly amount will be before you choose what to buy.
Do Not Make Lots Of Applications
Do not make lots of applications for credit cards or loans. Look carefully and choose the one you want and make an application just for that. If any potential lenders see that you have made several applications they do not look at this in a good light. They still might give you the loan or credit card you are after, but they will see you as a bad risk and may charge you a higher rate of interest.
Check Your Credit Report
Check your credit report to make sure it is correct. Sometimes fraud happens on them or there could be a mistake. It is wise to look at your report periodically to make sure this is not the case.
Manage your credit well and you’ll never fall into a financial downward spiral!