In today's uncertain economy, it's becoming more important to maintain a good credit rating. This can be hard to achieve at the beginning of each year as we tend to spend more than we can afford. Interesting enough, we all love the idea of being debt free, but let’s admit it…we’re all guilty of overspending sometimes, especially during the holidays!
The spirit of giving can be contagious and even transform the most money conscious among us into a shop-a-holic as we pile Christmas purchases onto our over-burdened credit cards. And then come January, we make New Year resolutions & vow to make better financial decisions.
The holidays are over, but chances are there’s still one thing you haven’t managed to open: That credit card statement!
For many of us, the good feelings experienced during the holidays begin to wind down as bills start to pour in. January credit card statements pack an unwelcome New Year’s punch as we realize that WE’RE IN DEBT!
Now that it's time to deal with your credit card debt, it's more important than ever to track down your expenses and learn how to be in control of your finances. And since our debt and credit standing are very closely related, how you handle your credit card expenses this month can either hurt or help your credit score…a factor that can affect your purchasing power in the future.
Here’s why:
There are five major factors that influence your credit scores.
Payment history accounts for (35%), level of debt/credit utilization (30%), age of credit (15%), mix of credit (10%), and credit inquiries (10%).
Since payment history and credit utilization are the biggest influences on your credit score, any late payments and maxed out accounts you may have will lower your credit score significantly. You should try to keep your payments up to date and your debt to credit ratio to less than 30%. For instance, a $10,000 credit card should carry a balance below $3,000 if possible. See how by clicking here.
This year, as you set your new year’s resolutions, such as shedding off excess pounds, I encourage you to take a closer look at your financial situation and give your credit cards a debt make-over. Learn how here.
By putting a halt to disturbing spending trends and keeping tabs on your credit, you can detect errors and avoid habits which result in a crumbling credit score, lead to higher borrowing costs, denial of loans, refusal of job offers, or some other financial hardship. Check out how!
Few people know what their credit score is or understand how it is calculated. Additionally, most people are unclear about how their behavior can affect their scores. Read more on credit education here!
The truth is if you are in debt, chances are that you are among the 75 million + American suffering from bad credit!
You cannot undo your Christmas shopping, but you can discover the true secrets to building financial wealth by freeing yourself from costly debt. Many people don’t understand their debt and the benefits of maintaining good credit. This is why Global Credit Management was created. Our desire to help you manage your debt and restore your credit derives from witnessing the effects damaged credit has on the life of many of our close friends and family. It is often easy to accumulate a large amount of debt, but paying it off can be tricky, resulting in poor credit.
Some of the WARNING SIGNS you have BAD CREDIT:
You got a PRE-DECLINED credit card in the mail
Your utility bills (water, power, etc.) are in somebody else’s name
You pay all your bills with Money Orders
If someone was to steal your identity, they would personally return it to you!
The only credit card you qualify for is a secured Card
Your only loan is from Cash Call
You can’t qualify for a regular cell phone contract
You need a co-signer for a federal student loan
Banks won't take your cash to open a checking account
You’re afraid to answer your phone because you’re avoiding bill collectors
You’ve considered getting another identity to start a new credit file
Your credit report is keeping you from getting a job
Card issuers are closing your credit cards without your knowledge
Your references (friends and family members) are changing their numbers
Your credit cards interest rates keep going up every months
You have committed to renting forever because you think you’ll never qualify to purchase your own home
These signs of debt can also cause stress. Stress may result in high blood pressure, frequent head ache, irritability, sleep disorders, excess weight (the list goes on), which in turn sparks uncertainty and steals away your freedom!
If bad credit is ruining your life visit our site at www.globalcreditmanagement.net for more information on how you can reconstruct a more solid financial future and regain control of your life.
I hope you take advantage of our educational resource and make the commitment to empower yourself with knowledge to maintain your new found freedom.
Make 2012 your year!
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