When you ask for a lender’s “hand” in extending you credit – and they accept your proposal – the marriage between debt and your credit scores begins. And as with any commitment, building and sustaining a healthy relationship between debt and credit takes patience and a willingness to compromise.
If you truly commit to your credit scores for better, you can avoid the worse by pledging these Credit “I Do’s.”
I vow, until debt do I part:
- I promise to pay my creditors on time, every month, so my scores won’t pay a hefty price for delinquencies, as payment history has the single biggest effect on my credit rating.
- I promise to pay more than the minimum amount due whenever feasible – in order to pay down my debt faster, lower my credit utilization, strengthen my scores and save money on interest.
- I commit to keeping my credit card balances below 30 percent of my credit limits, so my credit utilization doesn’t creep up and take a heavy toll on my scores.
- I will refrain from opening new credit cards, loans or lines of credit – unless it helps diversify my mix of credit types, improves my credit scores, or is unavoidable due to special financial circumstances.
- I pledge to prioritize my spending – and create a budget I can stick to – so I can avoid racking up more debt, build up my savings and better weather unexpected financial events.
- I will monitor my scores and reports, dispute errors or unauthorized activity, and track my progress (for better or worse), so I can stay fully informed and better protect my credit and my financial future.
At the end of the day, it’s all about honoring your vows to the best of your ability! Whether it’s upgrading your ride, moving into your dream home or living your ideal retirement, if you’re willing to prioritize, compromise and stay committed, your credit scores will have your back when it matters most.