(ARA) – What is your resolution this year? To eat better,
weigh less, exercise more, to spend more quality time with
your friends and family? The majority of Americans have not
ranked paying down debt as their top New Year’s resolution.
But given the current economic landscape,
many consumers should focus more on improving their credit
standing in 2009 than ever before.
“While losing weight is typically at the forefront of
Americans’ minds as they enter the new year, managing credit
health should take precedence for consumers this year,” says
Lucy Duni, vice president of consumer education at
TrueCredit.com by TransUnion. “Consumers who play a more
active role in managing their credit will establish
important lifelong habits that can enable them to have a
truly holistic view of their finances.” Here are five easy
tips to help keep Americans on the right path with their
credit resolutions in 2009.
Tip 1: Always pay your bills on time.
While it may sound like a nobrainer, making payments on
time is essential whether consumers are trying to boost or
maintain their credit score. Yet,
TrueCredit’s 2007 survey revealed that one in four (25
percent) respondents had missed
making one or more on-time bill payments.
Tip 2: Don’t overspend.
Keep debt below 35 percent of your limits. Although it can
be tempting and easy to overspend,
it’s important for consumers to keep their credit card
balances low and not to max them out.
Part of a lender’s evaluation includes reviewing a
consumer’s available credit. If consumers are
nearing or have over extended their credit, it may impact
their ability to be approved for a loan
at a competitive rate.
Tip 3: Keep tabs on your credit report.
In order to maintain a “healthy” credit score and to
position yourself best with creditors,
it’s important for consumers to monitor their report
regularly to provide an up-to-date view on
credit card activity and debt. It also enables consumers to
identity possible signs of fraudulent
activity, as the potential for identity theft remains high.
Tip 4: Monitor leases and loans closely where you are the
cosigner.
When consumers open a joint account or co-sign a loan, they
are taking on legal responsibility
for the account. Any activity on these shared accounts, good
or bad, will be reflected in both
credit reports.
Tip 5: Long-standing credit card accounts can help your
credit score.
Consumers should be cautious when thinking about closing
credit card accounts where they
have been making punctual payments over a long period of
time. In addition to lowering your
available credit, canceling old credit accounts can also
ultimately lower your credit score by
making your credit history appear shorter.
To learn more about managing
your credit, visit www.gotruecredit.
com. Courtesy of ARAcontent
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