Your Credit Rating

Stay on top of your credit rating

Your credit matters when it comes to applying for a job or a loan or buying insurance. If you don’t know your credit score, or haven’t maintained a good credit rating, you might be in for a few surprises.

“There are so many different reasons for people to pay attention to their credit report,” says Jennifer Ehresman, a Bank of America customer experience executive. “Pay bills on time and use credit wisely, and over time you’ll lay the foundation for a

car loan or mortgage approval. Knowing some basic information about your credit will help you stay on top of it and use it to your advantage.”

If you’re planning to buy a home in the near future, managing your credit is of utmost importance. Here are some tips to help manage credit and improve your credit rating.

Pay on time
Late payments on rent, utility bills and credit cards are reported to the credit agencies and will show up on your credit report. If you’re having trouble paying the full bill, pay at least the minimum amount due, which can be found on your monthly statement. While you’ll pay interest on the remaining balance, you won’t have a mark against your credit. Consider setting up automatic reminders sent to you via e-mail or to your mobile device so that you don’t overlook a due date.

Don’t overspend
If you’re maxed out on all of your credit cards, maybe it’s time to rethink your spending habits. When shopping, only charge items to your credit card that you can afford to pay back.

Make a budget
Create a budget and make sure it’s one that you can realistically follow. Be sure to include ways to start paying off the debt you’ve already accumulated.

Read the fine print
If you carry a balance on your credit cards, make sure you read the details about your interest rate so that you understand what it costs when you don’t pay your balance in full. Also read the information about any additional fees that may be charged to your account. They can add up over time.

Check your credit report
You can legally obtain a free copy of your credit report from each of the three credit agencies once a year. Make sure you check your report; it’s an overview of your financial history. In addition to creditors, other groups — including employers, landlords and insurance companies — can also review your credit report. These reports may contain errors, so if you find one in your review, report it promptly so that your score isn’t affected by the error.

“Stay in control of your credit to achieve your financial goals,” Ehresman says. “Your credit matters, and managing it proactively can help you improve your rating and enjoy the benefits that credit can offer.” — ARA Content

On the Web
To learn more on how to responsibly manage your credit, visit

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