Credit is an everyday part of our lives. From our phone bills, to credit cards, to our rent or mortgage payment, credit gives us the buying power to purchase goods or services over time. And it’s a privilege you shouldn’t take for granted.
Managing your debts effectively and begin to develop and maintain strong credit rating is essential.
With a good credit rating, you can ensure a strong financial future. Take care to minimize problems that could affect your ability to borrow money. And remember – tomorrow’s credit starts today.
When establishing credit, consider the following:
-consider applying for gas, department store, or major credit card to start your credit history
-make your payments on time and pay off your debts quickly
-borrow only for those items that you NEED and can AFFORD.
-LIMIT spending on non-essential items to 15-20% of what you earn after taxes.
-don’t use credit cards when your employment situation is unstable or uncertain
-don’t use credit to purchase basic essentials such as food, utilities, etc. Unless you can pay off the bill each month
-Limit your use of credit if you’re a habitual spender and have trouble living within your means
-Avoid reaching your CREDIT LIMIT the maximum you can borrow
-Don’t use credit cards if you have difficulty making payments, or you consistently make late payments
Tips that can make a difference to you