How Do I Manage My Credit?

When it comes to wise money management, managing credit should come naturally.

However, according to a survey, fully 50% of people with a credit report have never read it or had not followed up with it for over a year.


Manage My Credit – How?

A credit report is considered one of the essentials of financial literacy. To be a responsible consumer of credit, you need to know where your money goes.

The quickest way to manage credit cards anytime using the myaccountaccess log-in official portal.

Having a credit report helps the consumer understand where you fit into the credit system. Being unaware of your credit report may give you surprises. Lacking this information, you may be denied when you apply for credit or be asked to pay at a higher interest to cover the bank’s risk.

Furthermore, by dutifully and constantly checking your credit report, you can spot credit discrepancies and catch identity theft more quickly.

Here are 5 ways you can easily manage your credit:

Tip 1: Spend only a small fraction of your available credit

Banks are a fussy and fidgety bunch. So the more of their credit you are using, the more attention some of your creditors are giving you. Keep your spending below 10% of your available credit. Normally, spending above 35% waves a red flag in the bank. Always get an updated track record of the statements through the My account access portal.

If you habitually or often find yourself maxing out your card, better find a way to fix it as soon as possible. The longer and more often you stay near your credit limit, your score is much lower.

Tip 2: Frequently use online banking tools & reports to monitor account

A consumer that constantly checks his credit statement is rarely surprised. Identity thieves thrive on lazy people who couldn’t be bothered to read their statements and check their spending line by line. Probably because it’s too painful to read all the non-necessities you bought at a high-interest rate!

If you’re getting too close to the credit limit on any credit card account or too close to zero in your bank account, how about opening a bank account where you do not touch the money. Call it your financial freedom fund, if you will.

To make it work, make sure you put in 10% of your salary in that new account first before anything else. Then if you can’t stand it, spend the rest. But it would be wise advice if you start planning on paying off all your debts first.

Also read: How to pick the credit card that suits you?

Tip 3: Open and carefully read your credit card email statements

Make it a discipline. Make sure you open every email you receive about your credit card and read it, especially and most importantly, the fine print.

It’s in the law that when a bank or credit card company changes or charges your account, they must tell you in advance. It’s up to you to be aware of those changes because they can cost you if you claim ignorance about them.

Tip 4: Treat your credit portfolio like an investment portfolio

Treat your credit limit like an investment portfolio. If your credit risk is good, the less interest you have to pay to cover the perceived risk the banks are taking to trust you with their money.

Tip 5: Remember that credit affects and impacts every aspect of your life

Getting credit is a two-edged sword. Mismanage it and it will turn you into a pauper. Use it well and it will enhance your quality of life. In the modern world, credit is all around.

You need it to buy a house or car, apply for student loans or book a hotel.

In one way or another, all of these things are impacted by credit. Furthermore, your insurance rates are impacted by your credit report.

With better credit, you pay less for a variety of premiums. Insurance, Loans, etc. The higher your credit score, the more you are considered a trustworthy credit consumer.

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