Take Charge of Your Credit!

I read an article in Essence magazine about credit ratings and the importance of staying on top of it. I like this article. It gives great advice on what to do to stay out of "credit" danger! Here are a few tips:

1. Open all mail. Read every correspondence from your card issuer and keep a lookout for changing credit limits or changes in other terms. Get an up-to-date copy of your credit agreement, and prepare to go through the fine print.

2. Make timely payments. Watch out for a universal default clause, which may be buried in your agreement. This policy lets creditors scan your credit report regularly to check for late payments or exceeded credit limits on all accounts. Pay one bill late, and a separate creditor can stick you with a higher default rate or an additional fee. Federal legislation restricting these clauses won't go into effect until July, 2010, so pay all accounts as soon as you get the bill.

3. Stay out of the credit danger zone. Issuers are looking for red flags indicating a consumer trouble. Late payments, high balances and cash advances could be a sign of cash flow problems and prompt a change in terms. If issuers sense you're at risk, they may assess a monthly fee, lower your credit line, or raise your APR.

4. Reassess credit. Know which cards you use and which you don't. Are there any you are saving as a rainy-day credit line? Charge a small amount at least every three months to keep them active.

5. Get a fixed rate. If possible, ask for a lower rate, pay down your credit card, and try not to build it back up. Do everything you can to bring your card balances down as quickly as possible.


I know these economic times are tough, but please try to do your best to keep your credit rating good.