Credit – Build your credit history wisely

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Budgeting your money so you don’t depend on credit cards is the responsible way to live. But when you do use credit cards, a wise strategy can help you build or restore a good credit score. Keep a good credit rating with these tips:

* Avoid frequently opening new credit card accounts.

* Open a new account only when essential, and be sure to read all the fine print before you do – especially information about fees, penalties, interest rates, billing periods, and grace periods.

* Pay on time.

* If you have been denied cards due to a poor credit score or no credit history, consider a secured card. It may help build a good enough credit history to qualify for an unsecured card after a year or two. Try for a low interest rate if you expect to carry a balance. Otherwise, seek a card with no annual fee.

* Thirty percent of your credit score depends on how much of your total credit limit you use. Charge no more than 20 percent of your total available credit so your score won’t sink.

If you’ve made the mistake of opening too many accounts, order your credit report from all three credit bureaus. Find out which credit cards you have, check for mistakes, and get errors corrected.

Next, pick which cards to keep. Favor older cards because lenders prefer a long history of faithful bill paying. Keep at least, one low-rate card. Also, determine how much balance you’ll have each month. Then, select cards so that your total credit limit is five times that number, if possible.

When you choose which cards to pitch, pay off the balances and then call to close them.



All the best,



Timben