Your credit is not something that just “happens”. We all play an active role in how we establish, use and maintain our credit which has a direct result on our credit history. Accepting responsibility for your role in your current financial situation is the first step toward improving a bad situation. Knowing this you are in a better position to face your credit “demons” and get yourself back on the right track to financial security. There are many areas of personal finance that typically need attention. They include paying down debt, increasing savings and improving your credit. The following tips focus on improving your credit but you will see that by addressing one issue you can easily make changes to other areas at the same time.



Reduce Credit Utilization- This is a nice way of saying, pay down your debt. Your credit score is determined by many factors, one of which is the amount of debt you have in relation to your available credit. This is referred to as your debt to credit ratio or credit utilization. Not only will paying down your debt help your credit score but you have the obvious benefit of reducing your debt. It is a win-win financial strategy.

Pay Off Store Credit Cards- Most consumers can lay claim to at least one “store” credit card that they picked up while shopping. You may get a great deal at the check out register but most consumers end up paying three times the amount they saved if they carry a balance on their store card.

Pay Attention To Due Dates- There are many consumers that lament about the how hard it is to improve a poor credit score. Consumers should know that one of the easiest ways to improve and maintain good credit is by paying your bills on time. Payment history accounts for more than one third of your credit score. If you have difficulty remembering when to pay your bill take advantage of technology and arrange payments in advance. You can do this through your bank website, credit card company website or automatic monthly payments. If on the other hand you have trouble coming up with the money at the same time each month, contact your card company to see if your payment due dates can be changed to accommodate your monthly budget.

Contact Your Creditor To Negotiate Better Terms- This tactic may not be as effective as previous years. The credit card industry is experiencing many changes and in most cases accommodating the card holder is not as high a priority as it was in the past. Either way, you will not know unless you ask, therefore contact your creditor to see if your interest rates could be lowered or if you qualify for a balance transfer. Keep in mind that negotiating better terms with your creditor will not have a direct effect on your credit score, however reducing your debt and saving money will improve your personal finances and eventually your credit score.