Have you ever thought of your credit whenever you’re out for shopping?
What you should know about is that whenever you do go shopping, you can either improve or hurt your credit.
It just depends on how you handle it. We have for you some tips on how you can take care of your credit while enjoying shopping at the same time.
• Do A Credit Check
Before you go out to purchase items with your credit, it’s best to check it first to know where you stand and if your credit can handle the baggage. You wouldn’t want to further the damage if there are any. Make sure that your credit has no errors on it but if it does, dispute it over your credit agency as soon as possible.
• Make A List
Listing down the things that you have to buy will let you compute everything early. With this, you can avoid exceeding your credit limit and you will be in control of your money. Exceeding your limit is a sure fire way to hurt your credit report. The best thing you can do about it is to stay below the line at around 20%.
• Don’t Use Multiple Cards At Once
You might think that scattering your purchases on different cards will do you good. Truth is, it will only make it harder for you to maintain it. Not all cards have the same rates and limits. Always remember that a pile of bills will get you nowhere, it may turn to missed payments in the future. Use the one with the lowest limit to prevent overspending and try to pay in cash every now and then too.
• Pay Your Bills On Time
Paying on time may be a little difficult on the financial side but it will really improve your credit score and report in the long run. Managing your debt or finishing off your balances will also give your score a quick boost. Not only that, if you do this faithfully, it’ll be easier to get loans and you’ll be benefiting more from your credit score in the future.
• Stay On A Budget
Keep a check on your budget when you’re going out for shopping. Always make sure you have a plan and if possible, always list the necessary things that you need to buy and keep it that way only. Do not buy too much expensive stuff if you don’t have a budget.
As we know, overspending can ground a chain reaction of events. Once you get your bills due to overspending, you might miss out the payments and those missed payments will be recorded in your credit report. Due to this your credit score will go down, which will affect your financial life as credit score is taken as your financial credibility by the lenders and the banks.
Awareness and acknowledgment are most vital steps to uplift your spending habits. It is good to be aware about your own tendency of spending money without thinking even once. Your awareness will make you take better decisions. And most important is to know about your heedless and thoughtless decisions that can badly influence your future.
This guest post article was posted by:
Jack Carter – a financial blogger who loves to share financial tips to manage personal finances, improve credit score and monitor credit reports.