Catch a Gideon

Credit and Loans - Personal Finance Tips

December 6th, 2006 by digerati

1. Get a rewards card. If you need a credit card, the best type to get is a no-fee rewards card that you pay in full every month.
2. Borrow no more than 30% of your available credit. Borrow any more, and your credit score won’t look too good.
3. Pay off your credit card debt. Credit card debt is usually the debt with the most interest. So pay it off first. Better yet, don’t accumulate it in the first place.
4. Don’t use your credit card for cash advances. It will harm your credit score and the interest rates are outrageous.
5. Know your credit score. Order your credit score from Equifax, Experian, and/or TransUnion.
6. Protect yourself from identity theft. Obtain your free credit report at least once per year and follow these tips.
7. Pay all credit card balances in full each month. Leaving a balance on a credit card account will leave you susceptible to a very high APR. You may as well be throwing cash into the fireplace.
8. Consolidate your loans. Especially those student loans. You can lock them in at a fixed interest rate and have just one lender to pay each month.
9. Avoid payday loans. Bottom line: they’re scammy and they charge high interest rates.
10. Beware of scams. There are a lot of scams that deal with credit. Debt suspension offers, paying fees in advance, buying credit protection, and rebuilding credit usually sound too good to be true. There’s a reason for this: they are.
11. Be cautious with home equity loans. If you can’t make a payment, you could lose your house.

Source: Your Credit Advisor

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