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Are you using credit properly?

When you use credit you are using that little piece of plastic to purchase something today and pay for it tomorrow!

Common credit mistakes Some mistakes made that lead to a bad credit score and credit profile can be avoided with the use of a proper credit usage strategy.

1. If you can only use credit when needed. If you do, ensure you pay it off after use, or the full amount each month to avoid paying interest.

2. If you can use you debit card instead of the credit card, since it's deducted immediately form you bank account.

3. If you need to carry a balance due to an emergency, then do your best to pay more than the minimum due, as this will speed up the time to payofff the debt and save on interest being charged.

4. If at all cost try not to take cash advances , they may be free in the beginning, then after a certain period 12 months it goes to a higher interest rate than the regular charges, say 18% instead of 12%.

5. Never exceed your credit! In reality, never go past 95% utilization, that will put you in a dangerous position at he end of the month when the interest is accessed and it puts you over the 100%, and then you will be charged additional fees.

6.Always pay your payment on time. If your forgetful then use autopay to ensure that it gets taken care of.

7. Don't turn a blind eye and just ignore your credit, if a situation arises. Notify the credit card company, see if some type of plan can be worked out that will work for you and for them. the goal is to keep your credit in good standing.

8. Monitor your score and report report frequently so that you are aware of your current standing.

For more information and tips be sure to tune in and listen to the podcast 7 With L7 Legacy 7 Consultants here on the site or at Spotify!

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