You eat fruits and vegetables to stay healthy and go to the gym to stay in shape. Having a credit card is no different and requires the same steady participation. Once you’ve established a line of credit, it’s your responsibility to stay actively involved. However, your diligence has its own rewards, such as lower APR rates and bonuses like cash back. Here are a few ways you can make sure your credit scores stay healthy.
Stay on It
Pay attention to what you’re spending. Too often, credit cards can feel like a free pass. Stay mindful of what and how much you purchase. When you get your statement, look it over and check for any inaccuracies to avoid being double-charged or becoming the victim of fraud (especially if you use your credit card for online shopping). Remember: you’re entitled to a free credit report once a year. Set a reminder on your calendar and stay informed.
A credit card isn’t for spending more than you earn. Think of your card as a 30-day loan that you need to pay back at the end of each month, and save accordingly. Of course, carrying a balance isn’t necessarily a bad thing but carrying a large balance can be. If you make a big purchase on your card, know how much you’ll need to repay each month to avoid additional interest charges.
Right on Time
One of the simplest and most effective ways you can keep your credit healthy is by making timely payments. Aside from hurting your credit score, the additional late fees can add up rapidly over the course of a year, costing you upwards of $300. For many, making more than one payment each month helps keep their credit in check, while helping sustain a steady cash flow for other expenses.
Thinking about opening a card or transferring a balance? Missouri Credit Union offers members a line of credit cards from Elan Credit Card Services. For more information, click here.