Credit Reports, credit, abuse, Credit Scores, Protection Against Identity Theft

Good credit rating knows what you are getting in to.

  • What the annual percentage rate is?
  • Whether the loan will be secured?
  • What are the late fees, and any hidden fees?
  • When dealing with credit cards?

Be sure that you make at least the minimum payment each month. Watch your balance to make sure that it is not getting out of control. If you can’t make the minimum on your credit card or any type of loan, be sure to contact the lender. If you find yourself collecting many credit cards, ask yourself why. For example, if you reach your credit limit and then get another one, you’re using your credit to supplement your income and living off money that you don’t have.

Buying things you would not normally buy if you were broke simply because you have a credit card available is a mistake. In fact, one third of respondents to the typical teen survey indicated that they frequently regret items that they have bought. Another pending habit that can get you into trouble is charging many small items on your credit card that you could have used cash to buy.

Virtually all of the respondents of the typical teen survey said that they have borrowed from relatives before. There’s nothing wrong with this, but the trick here is to make sure both parties have a clear understanding of what the agreements is. These include how frequently payments are going to be made, how many payments, what the money will be used for, and the interest rate, if one applies. Don’t forget that you could be the lender of money in the future. And most importantly, don’t take advantage of your friends.

Although having a checking account doesn’t involve a lender extending you credit, be certain to balance your account so that you don’t bounce any checks. Bouncing checks can be very expensive, as one tenth of the typical teen’s survey respondents have learned. In addition, bounced checks will show up on your credit report.

Be careful that you don’t allow what appear to be small monthly payments to sucker you into buying things that are beyond you current means to pay. If you have a lease on your car, and payments on your computer, camera, and stereo, all these payments add up to what will become overwhelming monthly expenses? This can be a particularly big problem if you are living pay check to pay check and lose your job.

All of these suggestions add up to one simple idea: if you are a little cautious with the way you spend your money you’ll be rewarded with more than just good credit. Instead of feeling constant financial strain you’ll experience a sense of security and actually get a chance to enjoy the things you’ve worked so hard to get.

 

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