Five Steps To Keeping Good Credit

Once you have good credit, you don't want to give it up.
Instead of constantly obsessing over credit, wouldn't it be nice to just do
a few things to ensure that your credit stays where it should be? There are
four easy steps that every consumer can, and should take in order to keep
their credit in order.

Pay in cash

Whenever you are making a big luxury purchase, whether it is a big screen TV
or a new set of golf clubs, pay in cash. If you can't afford to pay for it
in cash, you can't afford to pay for it with credit either. If you want to
make a luxury purchase, save for it. Put away a little money each month
towards it. It will be a lot more rewarding when you know that you actually
worked for it.

Budget for emergencies

When making a budget, people always try to figure out exactly what they are
going to spend. Unfortunately, many people do not consider things like an
unplanned co-payment for a visit to the emergency room, or car problems.
Little emergencies like these can really add to your debt if you don't plan
for them. Always put aside money in your budget for emergencies and hold
onto it.

Say no to credit increases

Quite often, when a person has good established credit, credit card
companies will send you credit line increases. This is a way to keep you as
a customer and to show that they recognize your timely payments. Don't do
it! If you have low or no balances on your credit cards, then why do you
need more credit? The more credit you have, the more you can spend, and the
more debt you will go into. As previously stated, credit cards are not for
luxury purchases!

Get a Financial Check-up

Finally, when you want to make sure everything is alright with your health,
you get a checkup. Your credit deserves the same type of attention. Pull a
copy of your credit report and check everything. You might find that you
have been reported for something you shouldn't have, or that someone has
possibly stolen your identity. Or you might find nothing wrong. Either way,
it is best to make sure things are OK, so your credit is not unknowingly
being ruined.

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