Credit Tips

Building Your Credit History

Did you know you're making history? Every time you pay a bill on time — or don't pay it on time — you're building your credit history. Take into account some of the things a good credit rating can "buy:"

• The ability to purchase big ticket items, like a home, boat or new car
• A potential source of funds in times of emergencies or short periods of unemployment
• A means to finance unexpected expenses, such as a new roof or car repairs
• Peace of mind
   

How can you achieve or maintain a good credit history? Here are a few suggestions:

Tip # 1
Create a budget so you know exactly where all of your money is going. Keep daily records of everything you spend for a month and decide where you can cut.

Tip # 2
Start a savings account and commit to funding it regularly. One reason people run into credit problems is that they don't have cash on hand for everyday purchases.

Tip # 3
Consider transferring the balances from multiple credit cards to one new, low-interest credit card.

Tip # 4
If you own a home, consider taking out a home equity loan to pay off the balances on your credit cards. The interest usually is tax-deductible. Consult your tax advisor regarding interest deductions.

Tip # 5
Balance your checkbook regularly to prevent checks from bouncing. Too many bounced checks can have a negative impact on your credit report.

Tip # 6
To avoid late fees from creditors, make it a point to pay your bills on time.

You can also learn more about your credit history by reviewing your own credit report.

---