Maintaining Good Credit

Have a spending plan and follow it. Know your cost of living and plan for the future.

Shop around for financial services. Analyze each credit agreement before you buy. What is it going to cost you to get future dollars?

Make your payments on time. If you are going to be late, contact your creditor.

Establish a savings plan. You will need an emergency fund as well as money for retirement and other goals. An emergency fund will help you avoid excessive debt.

Use the same name when applying for credit. Avoid nicknames or abbreviations. Doing so will make it easier for credit reporting agencies to keep your information correct and up to date.

Review your credit report once a year and correct errors.

It is your responsibility to promptly update your address with your creditors.

Use a secured credit card or your student loans to build a positive credit history.

Cancel unused and unneeded credit cards. If you are looking to make a major purchase, like a house, and you have several unused credit cards, your ability to take out a loan could be affected. Lenders also consider how much "potential debt" you have and adjust your loan account appropriately.

To cancel credit cards:

Send a certified letter to the credit card company requesting that they close your account and report it to the three credit reporting agencies.
Keep a copy of the letter in your files.