Practicing Good Credit Habits By Rob Holland At Isnare.com Ezine Articles

Knowing what is right and what is wrong helps you in life and knowing what is right and wrong in building good credit takes practice as well. You don’t start with a perfect credit score and then your actions will determine if you can keep your good score or not. You actual have to “build” your credit. This takes practice and knows what types of actions help and what types of actions hurt your credit score.

Having a good credit score is something that everyone is striving for, but for most Americans don’t have a good credit score (above 720). The average American has a score of about 620 and this puts them in the “Fair” category. There are several things that you can do to help you maintain a good credit score, or if you have a score below 720, you can work to build (or repair) your credit.

Here are some tips to help you build or repair your credit. You do not have to hire someone to help you repair your credit, but it some cases, it may help.

1. The most important rule to building or repairing your credit is to never (again) spend more than what you can pay back. This sounds like a simple rule but often is the one that most Americans can not follow. With credit cards, most Americans find themselves in a position of being able to buy items that they normally could not afford. Even if you can afford the minimum payments, you are setting yourself up for a huge financial fall. You can also harm your credit if you don’t follow all of the “rules” that your credit card provider has given you to follow.

2. The next simple rule is to pay your bills on time and at least the minimum amount due. Again, sounds simple but most Americans can’t seem to follow this rule all of the time. One late payment really hurts your credit score and takes a long time to repair. It is best to pay off your credit card balance each month, but most Americans don’t (or can’t) do that. But if you work to pay more than the minimum payment amount each month, you will be working for a better financial future. Saving your credit for other things such as an unexpected car repair is better than using your credit to buy this weeks groceries.

3. If you have a credit card, then never exceed your credit limit. You are spending your future income, not your extra money that you have available. Remember credit is your commitment to repay money that you are borrowing (not money that you have).

4. Finally, be responsible for your finances. Keep your paperwork secure and well-organized. Never give out your personal financial information to someone that you have not verified their intentions. Identity theft has often been perpetrated by friends who see an opportunity to use your “good” credit. Many people think that this is a victimless crime but in actuality, you may not be physically hurt but the damage often can’t be repaired and will only be fixed when it falls off your credit report in 7 years.

Building good credit takes practice and you can start today by following good habits.

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