Tips to Good Credit

  • Remember this money is someone else’s and you have borrowed it from them.  Treat it just like you would if you borrow a tool from your neighbor.  Keep it only for the time you told them, take it back on time and be thankful!  
  • When you borrow money there is always a set method of repayment.  If for some reason you need to change the way things are setup (i.e. will be late, need to skip a payment, split a payment) then be sure and contact your lender when you find out. 
  • Your word is your bond.  If you tell your creditor that you’ll be in on a certain date, be there.  If for some reason you can’t make it, contact your creditor and explain the reason. 
  • Sometimes it is better to save your money and buy something with cash than to just rush out and purchase it on credit. 
  • There is nothing better than budgeting your money so there are no surprises. 
  • If you co-sign for someone else, you are just as obligated as the person that got to spend the money.  You are also obligating the amount of the repayment out of your budget even if you haven’t had to make a payment. 
  • It is a misconception that if you are less than 3 months past due you can’t be sued or collateral can’t be repossessed.  If you are as much as 1 day delinquent you have broken your contract.  Then it is in the hands of the creditor to handle. 
  • If you plan on renting or buying a home then the rule of thumb is not to spend more than 25% of your net pay on the payment.  Renting usually requires 2 months rent (1 deposit, 1 rent) and around $400-500 in utilities and phone deposits. 
  • Most places that grant credit use nationally linked credit reporting agencies which share credit information.  This allows us to see the activity of someone in one state although we are in another. 
  • If you are sued, the judgment will stay on your credit file for 7 years.  It can also be extended indefinitely for as long as the debt is left owing.