| By :
Molly Wider
If you are new to the credit card game and are seeking some tips on how to use your new plastic wisely, there are a few basics that could keep you out of trouble. The first rule of thumb is to realize how to preserve a good credit rating. A credit card can be a very powerful and easy way to establish a good credit history. If mistreated, it can also be the tool that sends you sinking. Having a credit card is a great way to exist in the electronic world. Once you get the hang of owning one, you will find its convenience to be, well, convenient. A great way to take care of your new best friend is to always pay on time. Paying the required minimum balance will keep your account in good standing, but paying more than that, or as much as you can afford, will keep you out of debt. Paying off the balance in its entirety each month is the surest way to remain debt free. Stay as far below your credit limit as possible. If a creditor sees you often max out your card or run it up to 80 per cent of its limit, this can damage your rating and any chances of a loan. Keeping your spending within the 30 per cent to 50 per cent limit of your credit allowance will fair much better with your credit score as well as any potential lender. It's very important to keep a close eye on your credit report. Applying twice a year for a free credit check by mail to Equifax and TransUnion is not overdoing it. There have been instances of people with similar or same names having the wrong reports on their account. It's important to have these reports corrected, especially if the error is reporting a negative remark. Your credit report will list all credit cards and loans that you have. It will list up to the past seven years of your credit history, each payment missed and by how long. Keeping a clean credit history should be important to you, especially if you are planning on applying for a new car loan or a mortgage in the future. Building a solid credit foundation is of great value. Many Canadians have had their credit soured by the recession, some even declaring bankruptcy. If you are one of the millions who have bad credit and would like to establish it again but have been refused credit from standard financial institutions, a private lender can help. By getting a loan, not only can you use the money for anything you like, you rebuild your credit at the same time.
|
![[Valid RSS feed]](http://www.articlesbacklink.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
