Credit Management

The key to managing your credit is control – control of how much you spend on credit, how quickly you pay it back and the types of items you purchase. Credit is not a financial cure-all. Used the right way, however, it can help you build a powerful credit rating and afford certain purchases.

• Spending Control
• Gain Financial Control

Three things you can do to help control your spending.

1. Plan your credit spending.

Use your credit for planned purchases that you intend to pay off over a specific time period. Impulse buys for "unbeatable" prices can stay on your bill for months, costing you more in the long run.

Before taking cash advances, consider the associated finance charges and fees. Often they can be much higher than they are for purchases. Avoiding approaching or reaching your available credit limit is good credit management.

2. Establish a monthly credit budget.

With all the various payments you make each month, it's easy to lose track of just how much you owe. Keep track of every credit purchase you make each month. This will help establish your monthly credit "budget" and spare you
eyebrow-raising surprises when your bill comes.

3. Keep on top of your monthly payments.

When paying your bill, always make at least the minimum payment shown on your statement. To reduce your finance charges, make more than the minimum payment each month.