Things You'll Need:
- self control
-
Step 1
Not appreciating credit.
Credit seems so easy to get these days that we don't seem to value it any more. But those with bad credit can tell you that it should not be taken for granted. Treat credit with respect. Make your payments on time. Never take out credit on more than one thing at a time that is a "want" rather than a need. -
Step 2
Giving into WANT rather than common sense.
Yes, all your friends have a big screen tv, but that doesn't always mean you need one. You may want on and wish you had one, but use common sense. If you can't afford it, don't buy it. -
Step 3
Raising credit limits.
Avoid raising credit limits on your cards. This just means you can get yourself into more trouble than before with the lower limit. To refuse an increased credit, just call or write the creditor and tell them, "No Thanks." -
Step 4
Paying off loans in the maximum months allowed.
When taking out a loan and you're offered a low payment for a longer amount of time or a higher payment for a shorter amount of time, most people choose the longer road. Do you actually think the creditor has nothing to gain by being so nice to you as to let you take longer to pay off your loan? Well, the fact is they have a lot to gain. It's called interest! -
Step 5
Lastly, shop around for rates. Settling for a high rate can drain your pocket book as much as using your cards too much. If you have a high rate consider calling around for a lower rate.
Comments
YFNMOM said
on 3/6/2009 Why couldn't we have read this before we were over ten thousand in debt. Once we get out from under these, we will never again charge another thing.
adamant123 said
on 12/17/2008 thats my opinion
8===D
stlscientist said
on 5/22/2008 I agree. I keep mine around for emergencies only. Credit in general should be reserved for large and needed purchases like a house or car. You make a good point.
WriterGig said
on 5/22/2008 Getting a credit card in the first place is the most common credit mistake, in my opinion.