Proper Use of Credit and Credit Cards

Hey Everyone:

This week our topic is the proper use of credit and credit cards. If you are a person that has a fairly decent credit history you still need to pay attention. If your credit just plain sucks, you need to pay special attention, too.

Nobody should carry no more than 3 major bank cards to their name period! If you currently have more than 3, you are setting yourself up for trouble down the road.
To correct your situation now is to pay down and pay off any major card accounts that you have and not to close those accounts. Like I mentioned before, no more than 3 major cards!

You should not have more than 1 or 2 major department store cards either. What you are setting yourself up to accomplish is to improve your FICO credit scores. If you don't know what that is I'll tell you here.

Your FICO credit score is a number between 300 and 850. All three credit bureaus use this number to rate us at how well we use and handle our credit obligations. If you have a credit score that is somewhere below 600, you will be consider by most banks and lenders as a "high risk" person. All that means is that your chances for getting an approval on a personal loan or applying for a credit card will most likely be denied.

Your best chances at getting an approval will be working at raising your credit scores. I will be addressing this issue next week. Until then stay cool!

Michael