Evergreen Advice
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.
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 fees and finance charges.
They can be much higher than the interest on purchases.
Avoid approaching or reaching your credit limit if at all possible. You’ll
save on finance charges and keep credit available for emergencies like car
repairs or unplanned medical costs.
And keep an eye out for these warning signs:
- You’re only able to make the minimum payment on your credit cards
for two months in a row.
- You’ve taken more than one cash advance (outside of travelling)
in the last 90 days.
- You’re surprised by the number of new purchases on any of your
credit cards.
- You’ve done more than one balance transfer in the last six months.
- You reached or exceeded the limit on any credit card in the last three
months.
- You need to work overtime or a second job to keep up with your consumer
debt payments.
- You’ve made more than one late payment to a credit card or secured
loan account in the last 12 months.
As we’ve noted, no one of these problems will hurt your credit score
dramatically. But several of them happening at the same time can do real damage.
Next: Managing Credit |
