Use Credit Wisely – Build a Great Credit Rating
It is sometimes easy to forget that you have to pay for what you buy. Here are some guidelines for controlling your financial affairs and making credit work for you - not against you:
- Make a budget and stick to it. Make sure you know what's coming in and what's going out. That way you can avoid nasty surprises.
- Avoid impulse buying. If you had to pay in cold, hard cash – would you still buy it?
- Comparison shop – never buy anything without comparing costs and value.
- Be careful co-signing or guaranteeing a loan for someone else – you could get stuck paying it off. Know the risks!
- Be sensible about the number of credit cards you have. How many do you really need?
- Keep track of all your credit purchases. Save your receipts and check them against your monthly statements.
- Whenever you buy anything, know the reputation of the store, the return policies, warranty details and the quality of what you are buying.
The Credit Bureau - "The Credit Police"
A company called a credit bureau holds the information about your credit history and rating. A credit bureau's job is to store and share your credit history with anyone who wants to check, but only with your permission. You often have to give a company permission to check up on you when you sign a credit card or loan application. You've heard the old saying - read the fine print? Do it!
About once a month, an update on you is sent to the credit bureau. The better you are at following the rules, the better your credit history and report grade will be.
Find out your credit rating
What are the Credit Rating Rules?
- Pay off your credit card in full by the due date. If you cannot pay off your credit card in full, pay as much as you can. Paying off as much as you can will save you money.
- Have only one credit card.
- If you run into money problems let the credit card company know and call us for help.