Credit Management

There are many ways to begin building your credit: pay a personal loan, buy an auto, apply for a credit card and pay it off in a reasonable manner and make rent payments on time. The following techniques will help keep your credit in A-1 shape.

1. Avoid making late payments on all consumer debt.
2. Pay more than your minimum payment on all credit cards.
3. Stay within your credit line.
4. Limit consumer debt to 20% or less of Net Monthly Income.
5. Check your credit report once per year to make sure that all of the information is correct.
6. If you cannot pay off your credit card each month, make sure the balance does not exceed 50% of the credit line.Try to keep your balance within a range of 34% to 50%
   of the credit line, and like we previously stated, DO NOT EXCEED 50%.
7. If you maintain a consistent credit card balance each month, make sure your monthly payment turns it over annually, ie, you maintain a monthly balance of $1,200.00, divide $1,200.00 by 12 = $100.00. Make the minimum payment of at least $100.00 monthly. This way if you decide not to charge to this card any more, it will be paid off in one year.
8. If you foresee a problem making the required payment on any of your liabilities, call the credit card or loan company to work it out. They will more than likely to be willing to work with you.

Use this calculator to assess your credit. After entering your information, your credit is assessed as 'Good', 'Fair' or 'Needs Improvement'. Press the report button for more information about what this assessment means to you.