This article shows you some of the most incredibly helpful credit management tips to help get your credit under control.
Quick question first…
Do you know one of the main reasons why your credit can get out of control?
It’s simply because you (and most people) don’t really look at it the way you should.
You see, these days credit is essential for virtually everything you do.
And in such a world, credit is still necessary for almost everything.
That credit score that so many people seem to gloss over is seen as more than just a number.
It’s looked at as a character score.
And it can make or break just about anyone in the developed world today!
Credit Management Starts With Knowing Your Credit Score
Yes, your credit score is the absolute most important thing when it comes to credit management.
It speaks volumes about you and it’s going to impact how you get seen as far as getting a loan of any sort, renting an apartment or trying to apply for certain credit cards.
You have to manage your credit properly in order to do this and the best way to start would be getting a copy of your credit report.
You can do this for free once per year.
Knowing Your Current Debts Is Also Very Important
The second step you want to take is looking at all of your current debts, whatever they might be.
The reason you want to look at all of your debts is because you have to determine just how expensive each one is.
When we say expensive we’re talking about interest payments, late payments, etc.
Even the overall monthly amount you have to pay on certain debts can be problematic, unless you have ways to get money fast each month, of course.
Once you have a list of what all your debts are and you have a copy of your credit report, then the next basic thing to do is look at ways to improve your credit score.
Now this is tougher than it sounds, but it can be done.
You first need to understand if there’s anything on your credit report that shouldn’t be there.
Even if you have no intention of applying for loan from loan companies, it’s a good idea to always know what is on your credit report.
Once you’ve done this you can move on to the next step.
What Is Your WHY When It Comes To Credit Management?
You want to determine the main reason you want to get your credit under control in the first place.
Is your goal to have more money on hand for recreational purposes?
Do you want the chance to save more money for a rainy day so you aren’t at the mercy of circumstances?
Do you want to have some money to put aside for residual income earning opportunities each month?
Do you want to make yourself look better on paper overall?
Understanding the reasons for wanting to get your credit under control will help to motivate you and fuel you.
Your credit situation isn’t going to improve overnight, but you can feel good about knowing if you take the proper steps, then your situation is going to be better credit wise than most of the people you encounter each day.
After you’ve done this, you’ll of course want to create the conditions you’ll need in order to be consistent in carrying out your credit management plan.
You would want these to be conditions that make it easy for you to stay consistent and will fuel you to keep going.
20 Incredible Credit Management Tips That Will Surely Get Your Credit Under Control
What we’re going to offer you now are powerful tips you can use in order to help you with this.
20 tips might sound like a lot, but what we hope is that by giving you 20 you’ll have a higher chance of finding something that’s actually going to work for you.
We hope by giving you this much you’ll key in on that one powerful credit management tip that will ensure you get your situation under control.
We don’t mind you utilizing the law of the vital few principle with our tips at all.
With that being said here are the 20 tips to help regain control of your credit situation:
1. Take the Time to Plan Out What Your Big Purchases Are Going to Be
Here’s the thing, big purchases or expenditures should never be done on the fly.
You always want to think about these very carefully.
Big purchases can’t usually be paid with easy cash.
In most cases, big purchases would include anything that you know you’re going to go into debt for.
It can be several hundred dollars to several thousand dollars.
We’re not talking about buying a home or going to college.
Think about big purchases or expenditures in advance, strategize to see if the cost can be lowered and determine if the value/benefit is worth it to you.
Even traveling for business or pleasure for example, you can take your time to look for the cheapest days to fly and book your flights on such days, as one way of spending less than you should.
Little things like these go a very long way in helping you get your credit situation under control.
2. Use Cash Back Programs or Apps To Get Some Cash Back On Your Purchases
When trying to effectively manage your credit situation, it pays to get back as much cash as you can on as many purchases as you can.
Thankfully there are special rebate or cash back programs out there that help you with this.
Such cash back programs help you get back some of the cash you spend on purchases from thousands of stores.
And not just online stores but offline stores as well.
Most of them even have special cash back apps you can use on your phone, allowing you to shop and claim your cash backs even on the move.
Ibotta is one of the best cash back programs to consider using. It’s completely free to join and immediately starts giving you cash back on purchases you make.
Click here to join Ibotta for free and start getting some money back, to help with your credit situation.
3. Determine If Something You Want to Purchase Can Be Afforded or Not
The bad thing about credit is that it can grant you access to things you really can’t afford.
When we say afford we mean – how is this purchase going to impact the rest of your monthly obligations and how thin might it stretch you?
You want to have a nice cushion as far as any big purchase is concerned.
Remember, certain things you buy can come with added costs you haven’t even considered yet.
And these might have to be paid out of pocket.
4. Don’t Purchase Something on Credit If You Truly Know You Don’t Have the Cash to Afford It
This isn’t the same as the first tip mentioned.
The reason why you don’t want to purchase something you know you don’t have the cash for is because psychologically you’ll do things to sabotage yourself.
You’ll justify it in your mind by saying “hey, I have no money so what can they do to me”.
Thinking this way is dangerous.
What you buy on credit has to be protected, because you’re still going to be in debt for it whether you have the benefit of the item or not.
5. Save As Much As You Can On Purchases
It’s a fact that when you save money, you make money.
And when you make money, you can pay off your credit card bills and handle your over all credit situation better.
Thankfully there are lots of ways to save money on virtually every item for sale out there.
You can even use special money saving app to help you automate the process, even when buying from your mobile device.
You can even use special apps to find gas stations with cheap gas.
It definitely pays to look out for ways to save money on what you buy, even before you buy.
That’s why you should use some of the best online shopping apps out there to get the best deals, at the best prices.
There are even special one day sale websites you can use to find great deals.
6. Do Your Best to Track What You Spend and How You Spend It
One reason why someone’s credit gets out of control is because they spend a lot of money on recreational activities and consumer type goods.
All of these are things you should get out of your way, to not go into debt for.
Take the person who uses their credit card everyday at Starbucks.
This person is spending a lot of money on coffee and has to pay interest on top of it due to using credit.
Track what you spend and minimize the nonessential stuff.
Thankfully there are special budget and investment apps that help you better track and manage your spending.
These are different from money earning apps of course but by helping you better manage your spending, they also help you make money somewhat.
It definitely pays to use them, especially as they help you even when on the move.
7. Try to Come up with a Maximum Amount You’ll Use for Credit Each Month
If you can control how much you’re willing to spend using a credit card each month, then you’ll be more in a position to think about what you buy, why you buy it and when you buy it.
Of course none of this is going to matter if you can’t stick to the plan, which is what you’ll have to do your best to do.
One way to make this work is to get a credit card that only has the maximum amount you’re willing to use each month, plus just a bit extra as a hedge.
8. Get As Much Free Stuff As You Can
If you are not spending money when you get things for free, you are saving money, right?
And when you are saving money, you are improving your credit situation, right?
Then try to get your hands on free things whenever possible.
Thankfully there are many ways of getting things for free these days. Whether it is free books to read online, free makeup samples, free baby samples, free gift cards, free food, free Internet and even free money it’s possible to get lots of things for free these days.
You can check out some of the above links to see how easy it is to get free stuff.
9. When Possible Try to Pay off a Credit Card in Full, Even If It’s Just Here and Now
We know that credit card issuers don’t like people who payoff their credit cards in full each month.
They would rather you get into trouble and end up looking for things like unsecured bad credit loans.
Yes, you can still get credit and loans but they will come at very high cost to you, long term.
So why not pay off your credit card in full every once in a while, should you have the opportunity to?
It would be like hitting the reset button and this is very powerful.
You’ll have times when you have extra money on hand and can payoff one of the lower limit credit cards you have in full.
Why not do this and hit the reset button?
10. Do Your Best to Get Credit Cards That Have Low Interest Rates or Interest Rates Lower than What You Currently Have
Interest rates can really eat you up with credit cards.
Even though not as high as interests from, say, instant payday loans, they can really add up every month.
You certainly don’t want that.
What you need to do is figure out if it’s possible to get those interest rates down.
Try calling up your credit card issuer and see if they can reduce it by even a little.
In the case that they won’t then don’t be afraid to look at other options.
Interest rates that are really high are the best way to ensure you never get your credit under control properly.
11. Try to Get Your Credit Score Increased in Order to Qualify for Better Credit Cards and Interest Rates on Credit Overall
One of the best ways to do this would be for you to get a copy of your credit report and dispute any negative items on it.
The negative items that can’t be proven will have to get removed and this will boost your credit score.
You can also try building your credit by using a secure credit card that reports to the three major credit bureaus.
Also See: Hot Penny Stocks Tips (including secret tips for getting 100% ROI Easily)
12. Don’t Look at Cash as Being a Bad Thing, Use It Sometimes
Carrying around credit cards all the time makes it easier for you to whip it out and swipe the card for a purchase.
You don’t physically see the money you’re spending.
It becomes easier to spend more than you want to.
If you’re using actual cash then you see it, feel it and touch it.
It becomes easier to put just a little more thought into your purchases if not for the reason of wanting to keep more cash in your pocket.
13. Use Prepaid or Debit Card More Often
Using prepaid or debit card forces you to only spend what is in the particular card, at the particular time.
This is a very good way of keeping your credit purchases under control.
It’s so effective that even kids debit and prepaid cards said to help set young people up on the right financial paths.
That’s of course unless they are teenagers and earn money themselves, thanks to jobs for 16 year olds out there.
14. Don’t Pay Minimum Monthly Payments on Credit Cards or Any Debt If Possible
Here’s the thing, minimum monthly payments are designed to make even the smallest amount of debt take forever to payoff.
Yes, you might trick yourself into believing this is a good thing, because you can get access to what you want now and pay tiny increments spread out over time right?
No, you just become a slave to the debt and you don’t want this.
Whatever it takes do your best to pay more than the minimum monthly payments on credit cards and other debt.
15. Keep Track of Due Dates as Well as over the Limit Fees and Late Fee Amounts
Have you ever taken the time to see how much money you spend or are in debt for due to late fees, over the limit fees, etc.?
These fees can really add up and make debt you owe even tougher to get out of.
Not to mention the fact that it hurts your credit and makes it tougher for you to get desirable interest rates.
Keep track of these things and avoid them at all costs.
16. Keep Track of When Various Utility Bills and Other Bills Are Due in Order to Avoid Late Fees
Once again, late fees on different utility bills will make it tougher for you to not only pay the bill, but also to improve your credit.
We understand that things happen sometimes, but this is why you need to manage your money well so you can be prepared for such things.
Late fees don’t go away and they can even go up if not paid.
17. Have a Credit Card Where the Sole Purpose of It Is to Use It for Disposal Items
The main reason why this would help you to better manage your credit would be because you’d likely be able to payoff this credit in full each month.
Disposal items are those such as gas, groceries, eating out at restaurants, etc.
Yes, we know that credit card issuer’s call those who payoff credit cards in full each month deadbeats, but don’t let this bother you.
18. Know the Proper Way to Game the System
When it comes to credit cards in particular there’s a certain amount of debt you want to maintain or a certain degree of usage.
If you don’t use your credit cards at all or use them very little before paying the balance in full, then it becomes tougher for a credit card issuer to get a true profile on you.
You need to build a credit history in order to help creditors understand how well you manage money and payments.
19. Try to Have Different Forms of Credit That You Show an Ability to Manage
All credit isn’t the same.
You have credit card debt, small personal loans, student loan debt, mortgage debt, business debt, etc.
The point is you want to build a system that will make it easy for you to manage these different types of debt.
First you have to take on more than one form of debt though, but don’t look at this as a bad thing.
Just make sure the debt is for a good purpose and not something pointless.
20. Consolidate Your Debt
Yes, consolidating your debt is a good idea. Even the experts at Debt.org highly recommend it, especially when you are paying too much interest right now.
If you are paying way too much interest on certain credit cards or other current debts, it’s certainly okay to take out better credit or loan somewhere else, to fully repay the credit cards.
And by better credit or loan, we mean those that will give you a much better deal than what you are currently spending on your current credit cards repayment.
Thankfully there are now personal loan apps that can help you with the process, even when using a mobile device.
But of course, make sure you take your time in finding the best deals that work for you.
Consolidating your debt definitely helps you reduce the monthly payments you are currently making on several credit cards, which ultimately makes it a lot easier to manage your credit situation.
Also See: Best Loan Places Near Me (including how to find the best deals)
If you really adhere to even some of these credit management tips, you will see a lot of difference within a really short time.
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