Understanding how credit works is critical for anyone obtaining a credit card, line of credit or any other financial product. Bank of America Global Card Services is working to help current and potential customers understand and manage credit wisely.
The bank recently released "Credit 101", the first of a series of radio segments and articles to provide consumer oriented advice. Each one include expert tips from a member of the Bank of America executive team. "Credit 101," featuring Jennifer Ehresman, Global card Services Customer Experience executive, was released to the media and is now being distributed throughout the United States. It has been replaced in more than 1,000 print, radio, and online media outlets and has reached approximately 22 million consumers to date.
Credit matters when it comes to applying for a job or a loan, purchasing insurance or seeking an apartment to live in. If you don't know your credit score, or haven't maintained a good credit rating, you might be in for a surprise.
"There are so many different reasons for people to pay attention to their credit report," Ehresman said. "Pay bills on time and use credit wisely, and over time you'll lay the foundation for a car loan or mortgage loan approval. Knowing some basic information about your credit will help you stay on top of it and use it to your advantage."
Here are some tips to help manage credit and improve your credit rating:
1. Always pay your bills on time. Late payments on rent and utility bills may not show up, but being late on your credit cards will be reported to the credit agencies and will show up on your credit report. If you are having trouble paying your full bill, pay at least the minimum amount due, which can be found on your monthly statement. Consider setting up automatic reminders sent to you via-email or to your mobile device so that you don't overlook a due date.
2. Don't overspend. If you're maxed out on all your credit cards, maybe its time to rethink your spending habits. When shopping, only charge items to your credit card that you can afford to pay back.
3. Develop a budget. Maker sure that the budget you create is one that you can realistically follow. Be sure to include ways to start paying off the debt you've already accumulated.
4. Know your interest rates. If you carry a balance on your credit cards, make sure you read the details about your interest rate so you can understand what it costs when you don't pay your balance in full. Also read the information about any additional fees that may be charged to your account. To help its customers understand their account pricing, Bank of America recently announced it will introduce a credit card Clarity commitment, a one-page explanation of the customer's credit card rates and fees.
5. Review your credit report. You can legally obtain a free copy of your credit report from each of three credit agencies once a year. Make sure you check your credit because it is an overview of your financial history. In addition to creditors, employers, landlords and insurance companies can review your credit report. These reports can contain errors, so if you find one in review, report it promptly so that your score isn't affected by the error. "Stay in control of your credit to achieve your financial goals," Ehresman says. "Your credit matters, and managing it proactively can help you improve your rating and enjoy the benefits that credit can offer."
No comments:
Post a Comment