An obvious and popular New Year?s resolution for many people is to get their body in shape, but what about their credit?
“Credit is a very important tool for all consumers,” said Alison Tavik, spokeswoman for the Maryland Bankers Association. “Having good credit is a way to prevent any mistakes you make today from having a negative effect on your financial future.”
The road to good credit begins with establishing good habits, according to Citi?s Use Credit Wisely program. This means managing your bank account without writing any checks you can?t afford, paying all your bills in full and on time, and making at least the minimum of your credit card payment on time.
The key, then, is to maintain those good habits and keep your credit score from sinking. Good credit is critical to securing a loan,purchasing a home and even landing a new job.
Citi urges consumers to shop around for the best credit card terms for their needs, to understand the terms of the agreement before accepting a loan or credit card and to keep credit card information secure.
“The more you know and understand about credit, the more likely you are to use it wisely,” said Rob Rosenblatt, executive vice president of Citi.
When paying bills, consider automating your payment process, said Phil Carrasco of Hagerstown-based Cornerstone Advisors. Most companies will automatically deduct payments from debit or credit card accounts by the payment due date.
“Automating is a good way to go, because if you?re late paying for your car or your mortgage, that?s going to pull your credit score down,” Carrasco said.
Carrasco also suggests consumers give their credit reports a yearly checkup. All consumers qualify for one free credit report annually from Equifax, Experian or TransUnion ? the three major credit bureaus.
During an ongoing credit crunch, Tavik warns consumers to, above all, be careful with their finances.
“Be very leery of anyone who offers you a quick fix, because there is no quick fix,” Tavik said. “Don?t get fooled by someone who says they can fix any prior credit.”
