Managing Credit
With a strong credit score, you will receive a steady stream of offers for
credit cards, car loans and home mortgages. Some people work hard to have
their names removed from any such mailing lists.
But these mailings can be useful to you, since they show you what the state
of marketplace is for consumer credit deals.
Plus, occasionally, you may see an offer that’s really better than
anything you have.
If you decide to get a new credit card, make sure the terms are genuine—and
permanent, not “promotional”—and that the credit card offer
is really better than the cards you have.
Try to keep no more than four active credit card accounts. If you find
a really good offer, replace a card that costs you more. And take your time
doing so.
In most cases, you shouldn’t close out your oldest card. It has the
most history and adds stability to your score. Generally, it’s good
to have had your credit card accounts for an average of at least three years.
Slowly close out unneeded or unused credit accounts. And, be cautious when
canceling—because closing accounts can negatively impact your credit
score.
Even if creditors offer to raise credit limits, allow yourself only moderate
credit limits.
Next: Watch the
Balance Transfers |
