The Dummies Guide to Credit Management

Author: Nicole de Freitas

Today it is rather easy to get a credit card and even easier to spend the money on it. To top that, our credit limit is then increased every year, tempting much? The problem is that we need to have a good credit rating in order to buy a home; insurance and even some companies will check your credit rating. Whether we like it or not, we all need to understand credit solutions and credit management in order to make good risk decisions as well as be able to create the best opportunities for you.

It is tempting to fall into the trap of ‘get rid of all your debt NOW' schemes, some bad debt companies claim to solve all your problems right away without telling you the cost of getting rid of your debt; these companies will most likely cost you more money in the long run. If you choose to go this route, do thorough research on the companies you are looking at, ask advice from friends and family, or look on the internet for positive and negative reviews. If the company asks you to pay them the money straight away, the chances are higher that they are a fraudulent company. The scary part is that if you are caught using the services of one of these fraudulent companies, you will be held liable and charged for fraud.

Here are a few tips that you can actually do each year to improve your credit rating:

1. Review your credit report

Every year you will receive a full credit report, make sure to look at this thoroughly. It is well known that many reports have errors on; it is your job to dispute any of these errors.

1. Keep Balance Low

It is important to always keep your balance at 50% lower than what your credit rating is. If your limit is $10 000 make sure your balance is $5000 or less, if it is over this amount then they could decrease your credit score.

1. Pay on time

Be dedicated to pay all your debts on time, you may not know it but this actually raises your credit rating.

1. Keep accounts open

Try not to ever close your account, the longer you have an account the better rating you will have as they can see how well you have paid your debts over a long period of time.

As you can see credit solutions and by using Appsmart credit application, credit can be simple if you have a good understanding of it and if you are self controlled to work through it regularly.

Article Source: http://www.articlesbase.com/credit-articles/the-dummies-guide-to-credit-management-6122518.html

About the Author

Nicole de Freitas enjoys writing and encouraging people on how to better handle their credit