With all types of credit, including your student loans, make sure that you aren’t borrowing any more than what you truly need.

USING YOUR CREDIT RESPONSIBLY

Being responsible with your credit means living within your means and not spending beyond what you can afford. When you use your credit, keep an index card in your wallet and write down the purchases you make. That way there will be no surprises when your statement arrives in the mail. You will also be able to keep a handle on what you are spending. Make sure you are charging only what you can afford to pay.

Here are some positive habits that you should focus on developing when managing credit:

Borrow only what you need!

With all types of credit, including your student loans, make sure that you aren’t borrowing any more than what you truly need. Always consider the impact that swiping your plastic can have on your future finances.

Pay your bills in full every month

Carrying a balance on credit cards can be tempting, especially since minimum payments are usually around 1-3% of your total balance.

Don’t ignore your service agreements

While your utility company, doctor, or landlord probably isn’t charging you interest, late or missed payments can be reflected on your credit report. You can even be sent to a collection agency (which is very, very bad for your credit) if you fail to pay for long enough. Always pay your bills on time.

Build a budget

Developing and sticking to a realistic personal budget will help you to better understand what you can and cannot afford and can even help you to plan and save for large future purchases, like a house.

Use no more than 30% of your available credit limit

This is really important for credit cards and personal loans. You should aim to use no more than 30% (but try for less) of your available limit each month. Even if you pay your bill in full every single month, if a lender sees that you are using most or all of your available credit, they will assume that you need all of that credit.

Focus less on your credit score, and more on developing positive, lifelong habits

You are more than a number, and it is more important to be in good financial health than it is to have a perfect credit score. Work on reducing your spending and eliminating your debt.

Always pay off your credit balance in full every month.

Since you will already know the balance due before you get your statement (because you wrote down your purchases on the index card), put money aside to pay the bill. When you get your statement, pay it on time. By paying off your credit card balance in full and on time, you should be able to avoid interest charges and late fees.

Therefore, in closing the first step to using your credit responsibly is by knowing what your Credit Score is, and what your financial health looks like. Click here to view your credit profile for free with Splendi.

Should you need assistance with queries & disputes feel free to email our team here.

The first step to using your credit responsibly is by knowing what your credit score is, and what your financial health looks like.