Credit management is a plus!
Credit scores affect everyone and everything! Everyone’s got to have a credit score to survive.
Whether you plan to purchase a car, rent an apartment, or want to pick up a cell phone, having credit in your name is part of being approved.
Here’s a list of what to do’s and what to don’ts!
- Open a bank account – it doesn’t appear on your credit report, but bank account numbers are usually asked for in a credit application.
- Apply for a credit card – to avoid being denied, only apply for credit cards with the requirements you are likely to meet. A simple department store or gas credit card can be easier to obtain than a bank issued card because they don’t revolve.
- If you have bad credit already, apply for a secured card – if it’s hard to get qualified, you can apply for a secure card. A secure card has a credit limit based on the deposit you make. A secure credit card works the same way a regular credit card does.
- Charge purchases and make payments on time – this shows responsibility and can help you open new credit accounts if you need it. Remember that a $5000 credit limit is not an additional income!
- Overdraw your bank account – you will be charged with heavy fees and could damage a good reference.
- Avoid missed / late payments – your credit rating will be damaged!
- Cash advances – avoid cash advances! They’re expensive, and you can be charged a hefty upfront fee of 2-4%, plus the high interest rates. Also, there are no grace periods for a cash advance.
- If you’ve been denied credit, be sure to ask why. Reasons can include anything from income, employment, or credit history. It’s important to know because if you are denied multiple times on your credit report, you can be viewed as a negative to a potential creditor. View your credit history and if there are mistakes, be sure to have corrections made.