Manage Your Credit Wisely...

Just about everyone needs credit. Whether you're renting an apartment, purchasing or leasing an automobile, purchasing a cell phone, or making purchases online, managing your credit responsibly is a fundamental part of establishing a good credit history.

The following tips will help you get started with managing your credit responsibly:

• Make Your Payments On Time. Use your new credit card for purchases and be sure to pay the balance on time. Avoid missed or late payments to any creditor. Late or missed payments can negatively effect your credit rating.
• Know Your Credit Limit. A credit limit is not additional income. View your credit limit as a different way to spend the money you already have.
• Develop a Spending Plan. Before you use your credit card, you will want to make sure that you are able to pay off the balance on the items you plan to purchase. You can accomplish this by writing down all of your expenses and your income and adjust your spending accordingly.
• If Denied Credit, Ask Why. Ask any creditor that denies you credit to give you the reasons for denial. There could be multiple reasons for denial, such as credit history, employment or income. It is important to find out why you are denied. Frequent inquiries (applying for credit) on your credit report could potentially be viewed negatively by a creditor.
• Be Secure With Your Credit Card. Don't let anyone else borrow your credit card or in any way have access to your account information. You are responsible for any authorized use of your accounts. Don't give your card number to anyone over the phone or Internet unless you have initiated the transaction.
• Know What is On Your Credit Report. You can acquire your credit report at www.annualcreditreport.com. If you are denied credit, you can request a free copy of your credit report to see if there is inaccurate data on your file and have corrections made.

Check Your Credit Reports Regularly

When applying for a credit card, you may want to check your credit report before you apply. The last thing you need is for a credit report problem to slow the processing of your application, especially if it's not your fault. Once you acquire your credit report, you should review and validate the following information is correct:

• Your name, or names if you are or were married
• Social security number
• Date of birth
• Addresses of places you've lived
• Names of places you've worked
• Pending accounts and accounts that have been closed
• Nothing has been on the report longer than is allowed by law
• Bankruptcies must be taken off your credit history after 10 years
• Suits, judgments, tax liens, arrest records, and most other kinds of negative information must be dropped after seven years
• Records of delinquent payments or other problems (i.e., make sure they aren't mistakes)