3 Simple Credit Rules to Always Follow
Credit cards get a large number of people in this country into trouble. A credit card gives you this false sense of freedom. If you search every nook and cranny of the internet, you will find that some people have found little credit card tricks to save you a dollar here and a dollar there. The problem is they make it sound so easy on the internet. It might have worked for them, but chances are it is a crap shoot. If you want to save yourself from long term stress, I have three simple rules for you to follow.
Pay on Time
This is obvious. To keep your credit score moving in the right direction, you are going to need to pay your bills on time. Keep a calendar, set an alarm, or do whatever it takes to not miss that payment, even if you have never have missed a payment before and they won’t raise your rates for missing one time. It counts as a strike and will not be forgotten. You will be very sorry later when that little mishap was the first step in that bank loan rejection, or you’re getting your interest rate jumped up to 25%.
Low Credit Balances
Keeping your credit balances low will be the most helpful influence in helping you pay on time. If you make a monthly budget and keeping a tally of what you have bought, it will help you know if you are on pace to pay your bills. Live within your means. There is no reason to try to impress other people with glamorous valuables that you don’t need. Living a life outside of what you can pay for might give you short term happiness but will come back to haunt you.
Only Open New Credit When it is Absolutely Necessary
We understand if you get in over your head sometimes and have to open a new line of credit. It happens to the best of us. When it comes to feeding your family or keeping the electricity on, absolutely open new credit if it is necessary. If you need the extra money for something that is not of dire need, then you are making a mistake. When you’ve spent the money and the extra bill with interest comes in, you will be trying to dig yourself out of a hole. You will want to retire at some point but it is hard to retire if you still have debts to pay.
Pay on time, keep your credit balances low, and only open new credit when necessary. Try to not put yourself in a hole by following these three simple rules and you should be alright. Life is tough sometimes and all we can do is fight our way through it. You don’t have to do it alone, if backed up into a corner, call people like us at Welke Law Firm who have seen people run into some pretty bad situations and helped them get to the other side of it still standing. We are aggressive attorneys who fight for you because we care about you.