Pay Attention to Your Credit Card Statements

Speak with the credit card company right after you see a charge on your statement that you did not make. This will help your creditor catch the person who is using your card fraudulently. It will also serve to make sure you are not going to be held accountable for any false charges. A quick call or simple email may be all that is required for you to report a fraudulent charge. WERE YOU A VICTIM OF IDENTITY THEFT? We can assist you with the process of getting your Credit World back... Credit is King and Knowledge is Power. Gaining Financial Stability with Intelligence and Integrity! Call 18004421591

What is gardening?

Gardening your credit simply means that you are refraining from applying for new credit or taking any actions that might result in a hard inquiry. You’ve planted the seeds of new trade lines, now it’s time to water them and let them grow. It’s important to approach this tactic with a goal in mind. Are you hoping to establish a history of on-time payments? Are you waiting for negative information to “fall off” your credit reports? Are you simply waiting for your accounts to age? No matter which goal you choose, try to give yourself a concrete timeline. For example your goal might be “I’m going to garden my credit until July 16th so that my new accounts can age 6 months before I take on any new accounts.” Once you’ve chosen a goal and timeline, all you have to do is stick with it! Don’t apply for new credit and keep an eye on your reports and scores.

Gardening your credit

Face it. We live in a world where credit is everywhere. We’re offered a credit card or new mortgage rate every time we turn on the TV, check email or even buy a new shirt. It’s so frequent and accessible, it’s easy to forget the potential impacts on your credit rating. Yes, getting approved can feel like an accomplishment worth celebrating. But immediately after you’ve been approved for new credit, it’s possible for FICO Scores to temporarily drop. This could be for a number of reasons, such as the fact that you have a new hard inquiry on your reports or because you now have a new loan or credit card with no history of payments yet. Applying for multiple new lines of credit at once can have an even more substantial impact. If this sounds like you, it might be a good time to focus on gardening your credit. What is gardening? Gardening your credit simply means that you are refraining from applying for new credit or taking any actions that might result in a hard inquiry. You’ve planted the seeds of new trade lines, now it’s time to water them and let them grow. It’s important to approach this tactic with a goal in mind. Are you hoping to establish a history of on-time payments? Are you waiting for negative information to “fall off” your credit reports? Are you simply waiting for your accounts to age? No matter which goal you choose, try to give yourself a concrete timeline. For example your goal might be “I’m going to garden my credit until July 16th so that my new accounts can age 6 months before I take on any new accounts.” Once you’ve chosen a goal and timeline, all you have to do is stick with it! Don’t apply for new credit and keep an eye on your reports and scores. Why garden? The purpose of gardening is to nurture your new trade lines and, ultimately improve your FICO® Scores. Credit data is complex, so there is no guarantee that gardening will raise your scores the way you envision. Each credit profile is different, and FICO Scores consider many different behaviors. Learn more about what’s in my FICO Scores. However refraining from new credit applications and waiting for new accounts to age can be a healthy choice for people who have a habit of applying for new credit often.

Credit card companies know what they’re doing when they offer enticing sign-up bonus offers and cash-back rewards. Although it might be a good idea to take advantage of these special offers, you should think long and hard about putting yourself in debt in order to fulfill the promotions. Just because you’re getting 5% cash back on electronics this month doesn’t mean you should buy a computer you don’t need to get the rewards. Not only are there usually caps on how much cash you can earn, but if you charge too much and can’t pay off the balance in full, you’ll be paying interest on those charges. That interest may wipe out all of the rewards you may have earned. This doesn’t mean you shouldn’t try to earn rewards, just make sure you’re doing the math and making the rewards worth your while. Call 1-800-442-1591

Maintain the length of your credit history

Length of credit history accounts for 15 percent of a credit score. And when you close a credit card account, the account and its history will eventually disappear from your credit report. (This usually happens within 10 years of closing an account.) And once it's gone, it can no longer bolster your credit score. So resist the urge to clean up your credit file by closing credit card accounts. Keep them open and enjoy the benefits of all your years of being a credit customer.

Start small

Credit cards are great for building credit if you use them responsibly. Start with a card that's catered to your needs. --Student credit card: If you're still in school, try a credit card geared toward students. Student credit cards are meant for younger consumers who generally don't qualify for high-end rewards credit cards. But there are some that offer cash back or other rewards. Check out the Discover it for Students or the Journey Student Rewards credit card from Capital One. --Secured credit card: If you have a low credit score or a thin file, consider a secured credit card, which generally guarantees approval. Secured credit cards require a cash deposit that serves as your credit limit. The deposit usually ranges from $300 to $500. These cards are good if you're just starting out because they're low risk. Consider the Capital One Secured MasterCard or the First Progress Platinum Elite MasterCard Call 1-800-442-1591

Test Your Knowledge of Everyday Actions That Affect Your Credit Score

Your credit score is a key indicator of your financial well-being and of the risk you pose to lenders. The most common credit score, known as a FICO score, ranges from 300 to 850. Generally, a score of about 700 or higher means you're managing your credit well. A score of 760 or higher is often what you need to get the lowest interest rates on loans. Along with making moves to keep your credit score high, you'll want to avoid actions that could set it back. You're probably aware that paying bills late can wreak havoc on your score. But do you know what else can drag down your score -- and what has no effect? Test your knowledge of how to protect your credit score from taking a hit.