CREDIT RESTORATION TIPS!

What's Your Bottom Line.... Credit cards are tools that build your reputation as a financially responsible adult. With the right intentions and proper use, they can build and rebuild security. Used otherwise, they can spell financial trouble. Holding multiple lines of credit can be beneficial if you act proactively and ensure to pay off the balances on a monthly basis and do not max out the credit limit; staying at or below 30 percent has been shown to send the clearest message to lenders that you are financially responsible and accountable for your spending habits. However, multiple lines of credit may carry too high of a risk if they are used as “free cash” to finance items your bank account cannot handle, which can lead to large debt problems and a murky credit history. To avoid falling into the frequent trap of using plastic in a pinch, change your mindset to view credit cards as an extension of check and debit cards, and only spend what your bank account can handle. With proper control, holding credit can be an unparalleled financial benefit. As with any contract or financial decision, think before you sign. Understand what you are getting yourself into by opening additional lines of credit or holding lines of credit that are not helping to build your security. Don’t be caught unprepared. Take control of your financial health today.