Ways To Manage Your Credit

The thing that lenders are looking for when deciding whether or not to offer a potential borrower a loan is responsible credit management. Lenders want to know that the credit they extend you will be used wisely and paid back in a timely manner. It's not always clear what the best ways to manage credit are. Here are a few credit management tips to help you out. Careful Credit Card Selection. There are a lot of credit cards out there with many different features. It's good to have a few credit cards, especially if you can limit yourself to only using a small percentage of the available credit on each one. However too many credit cards can become a concern to lenders, so it's important to choose the ones you hold wisely. Consider rewards programs that fit in with your lifestyle, such as cards that offer airline miles or gas rebates. Remember though, that far more important than rewards is the APR, the interest rate the card charges on purchases, cash advances, or balance transfers. Low APRs are good, especially if the low rate is fixed. Make sure you know whether your low APR is a regular rate or an introductory rate that will expire. A credit card with a high limit can be great for your credit too, as it will be easier to maintain a high level of available credit. Credit Reporting Services. It's hard to manage your credit picture if you don't know what it is. Credit monitoring services allow you to access your credit report, making it possible to correct errors and to see what might be causing your credit rating to suffer. These services can also provide analysis tools that can tell you, based on your credit situation, what specific things you can do to manage your credit successfully. Responsible Credit Practices. In the end, the best way to manage your credit is to use it sensibly. Make your credit card and loan payments on time every month. If you feel you may have difficulty making all your payments, take action before the situation becomes unmanageable and you end up with bad credit. Take out a debt consolidation loan or use a balance transfer to get balances on one bill with lower interest. Contact your credit card company or loan agency to try to work out the best way you can meet your obligations. If you make a commitment to good credit management, you can make it happen. Financial directory