Monitor and Maintain Your Credit Report

While media reports may have brought optimism and renewed confidence to many, news such as “pre-recession” spending levels should not be considered a free ticket to rack up more credit card debt. You can’t continue to do the same thing and expect a different result – which is commonly referred to as, the definition of “insanity.” As for the banking industry and other fee charging financial institutions… buyer beware! While the banks place much of the blame on new banking regulations, most of the blame is theirs to claim. The bottom line here is the customer should always be treated fairly, regardless of how much profit the bank’s board of directors wants to earn each year. Hold your bank accountable! Ask to speak to the manager, and negotiate better rates or a reduction of fees. If they balk, shop around for a new customer-friendly bank. Matt’s Weekly Tip, Tool, or Technique: rnMonitor and Maintain Your Credit ReportrnBe sure to check your credit report often. You have the right to request a free copy of your credit report from each of the 3 major credit-reporting agencies once every 12 months. Be sure to examine it closely and dispute any inaccuracies. Because of the tight lending environment today, it's more important than ever to have a good credit score, especially if you ever want to obtain a loan, mortgage or have any other credit need. Even if you aren't applying for NEW credit, maintaining a good credit score can help you avoid paying more, to rent an apartment, hook up utilities, or even when signing up for mobile phone service. Here are 4 easy steps for maintaining good credit: #1 Check your credit report once per year, from the 3 major credit reporting agencies. Which are Experian, Equifax, and TransUnion. #2 Pay all of your bills on time - this includes utilities, credit cards, car payments, mortgages, and anything else you owe. If you're delinquent, your missed payment WILL end up on your credit report, and can stay there for years! #3 Keep your credit balances LOW compared to your credit limit. If you have high debt now, work hard to pay it down every month. #4 Only use credit when it's absolutely necessary - and no, Christmas shopping does NOT count as a necessity.