Tips for Credit
Most adults have several different types of debt; Credit card, car loan, line of credit, and the biggest one, your mortgage. There is nothing wrong with this, but we have to be careful to use these credit lines properly, to know what the product is, and whether you are getting the best product for your needs.
As Bruce Sellery recently stated, worrying about the little things like banking fee’s (for withdrawals, or transfers) is not what you should be focusing on, there are much bigger fish to fry first!
Your mortgage is typically your largest debt, this is why when its up for renewal, it is important to do your research and start the process over as if its the first time. Your needs change, your goals change, and most importantly the lender’s products and rates change! So it is always in your best interest to call your mortgage agent so you can find the right product and rate for your needs.
If you are worried about some of the annual/monthly fee’s from your bank, look around, not everyone charges the same fee’s. Also, banks have multiple account types, some have no fee’s at all as long as you maintain a balance, or meet some other requirements.
You should pay your credit cards off in full if possible – paying 15-19% interest is not going to be in anyone’s best interest. It may take some time and behavioral changes, but it is important to get those credit cards to the point where you can pay them off in full at the end of each month. Whether that is consolidating the debt into your mortgage, or budgeting yourself more until its under control, getting control should be a priority. Once you have everything in check, it is important to change your habits to keep yourself in good standing, if need be, get rid of all but one of your credit cards.
At the end of the day it is important to remember that credit runs our world. If you want to borrow money for big ticket items you need to prove you can handle your credit. That means having at least two credit lines, but they have to be in good standing. Use your cards, but make sure to use them wisely. (*Note – having cards and not using them does not help your credit score).
No late payments, no overdraft, and not too much debt. Everything in moderation!!
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