Consumer financial literacy has become a major focus for the consumer credit information industry.  Our newest contributing writer Allen Smith offers tips on wise personal credit management:

Just as air and water are two most important necessities of life, similar money and credit are the two other most important material needs of life. You cannot live without any of the two – air and water.  Similar is the situation if the finances are considered. You need money in order to fulfill all of the requirements of life, and credit too is extremely important for you to fulfill some real big requirements of life. Without credit, you cannot borrow, you cannot buy a house or it may also be hard for you to get a job without proper and good credit.

Therefore, it is extremely important to manage credit.

Managing credit of your own

In order to manage credit, you would be required to:

  1. Use credit cards responsibly – It is important for you to use the credit cards responsibly enough, so that you do not end up incurring huge debts. It becomes hard to pay down large debts and that goes on to increase debt related issues.
  2. Check the credit reports – It is required of you to check your credit reports from time to time. You should know that you are entitled to get free copy of the credit reports at least once in a year. It is easier to get the same from Other than this, you can pull your credit report for some dollars several times a year, which won’t hurt your credit in any way.
  3. Maintain on-time payments – If you can go on making the timely payments, it is going to help you in improving your credit, and in maintaining the same too. The payment history accounts for 35% of the credit score.

All of these together can help you not only to have enough credit, but also to maintain a good credit rating.

Allen 1About the Author: Allen is a financial writer and blogger. He works in a CA based Law Firm. You can follow him in his personal blog: Toxic Finance