To achieve your goal of safeguarding yourself against financial trouble, we encourage you to keep the following pointers in mind:
- See to it that all the items in your annual credit report are accurate and up-to-date. If you haven’t seen your credit report then, we advise you to contact the major credit bureaus and request for the documents, right away. In so doing, you can scrutinize the transactions found in your credit files and you can check if everything’s correct. Keep in mind that a single error in your payment or credit history can cost you your good credit standing and can ruin your chances of qualifying for affordable credit programs, later on.
So, to avoid having problems, make it a habit to order the latest copies of your annual credit report, at least every six months.
- Work out a debt repayment plan, especially if you have incurred a huge credit obligation, at the beginning of the year. And be sure to stick to all the items found in your plan, until you can completely settle your credit card charges, as well as your personal, car, or mortgage loan.
- Make a conscious effort to control your credit and spending activities. Are you currently managing more than three credit programs, at the same time? And do you have plans to apply for more? If you answered YES to these two questions then, you should heed the advice of finance experts and stick to what you already have. Always remember that managing multiple lines of credit all at once can pull your credit score down. Moreover, it actually raises your risk of incurring a huge debt, which you may soon find very difficult to settle.
You should also pay particular attention to your spending habits. If you honestly think that your shopping sprees and lavish lifestyle could inflict serious damage to your personal finances and even to your credit history then; it’s about time that you make serious changes in the way you use and spend your financial resources.
- Scout for credit programs that can help you dig yourself out of your debt hole. For instance, if you wish to settle your debts, in one full-swoop then, we advise you to apply for a debt consolidation loan. After all, this credit program can provide you with more than enough funds to settle your financial obligations, completely. In return, you will be required to pay back the cash you received, plus a minimal interest charge, on installment basis, over the course of two to three years.
If you wish to reduce the payments you make on interest, on the other hand, you can always take out low-APR credit cards and transfer your outstanding balance on them. In so doing, it will be much easier for you to gradually pay off your dues, before this year ends.
- Be very careful where you disclose or share your personal and credit information. After all, this tip can help safeguard consumers, like you, against credit fraud and identity theft – crimes which can inflict severe and long-term damage to their respective credit history.
Now, while transacting business, either offline or online, we suggest you pick the right commercial establishment, shop or online merchant to deal with. And be sure to check out their privacy and security features, before sharing or transmitting your highly-confidential details with them.