5 Ways to Outsmart the Credit Monster

Jan. 14, 2009 - PRLog -- Have you ever had a ignored leak? You knew that it was there, you may have even known that  statistically approximately 200 gallons per day can be leaked out. However, in comparison to other pressing issues, it was low on the priority list. That is until the  calculations showed that 200 gallons lost per day is 73,000 gallons per year. Think of the money that could have been saved by simply dealing with the problem at the beginning when it was still small. Now let's put this big difference into perspective...

When money is tight and the economy is uncertain, budgets get scrutinized. Naturally, consumers start analyzing utility bills, grocery spending, optional entertainment expensives, even school budgets. However, most people do not think to look at their credit card interest charges. This is because most fail to truly grasp the annual sum of what is paid in extra interest fees. For those that do, it's common to feel helpless and unsure as to what can be done about it.

What if you learned that because of a bad credit score or poor payment history, escalated  interest rates divvied up amongst credit card bills are costing as much as an extra car payment each month? How would you feel about allowing $3500-$7000 to quiet leak out of your budget  instead of funding your own economic stimulus?  Wouldn't that be something of an unnecessary expense?

Good credit scores do not happen overnight. It's not magic. On the contrary, having a good credit score is the result of understanding the credit scoring system and knowing how to play the game so that consumers like you have a chance at being victorious and not victimized.

Outlined below are several things you can do to outsmart the credit monster! With these strategies and information, one can easily influence, improve and maintain a positive credit score.  As a result, high interest rates can be positively impacted and the leak can be plugged so that you can keep more of your hard-earned money.

1. It's extremely important to have a secured account or debt such as a car loan for a 12-24 month minimum for -no- "late" payments. Infact, if you pay prior to your due date, it reflects more positively on your credit score.

2. When opening an account, make a purchase to activate the card. This is key!

3. Pay a large amount of the balance owed as soon as you receive the bill but not the full amount.

4. Resist the urge to close credit card accounts, just keep the balances at zero. If you close your accounts, you affect your available credit to debt ratio thus negatively impacting your credit score .

5. Always make sure your available credit is MORE than 70% of the total. This means that if you have $10,000 in credit through several cards, that you are ONLY carrying a total debt of -no more- than $3000. Once you start using more of your credit, this makes you look like a higher risk.

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About Debbie Switts and Good Friend Mortgage

Debbie Switts, CEO of Good Friend Mortgage is a local, independent mortgage broker in Alpharetta, Georgia, who is committed to helping consumers learn how to control their credit before the credit controls them. She provides customers with credit enhancement plans to prepare them for home ownership. Through an individual roadmap to credit success, Debbie works with clients to improve their credit on their own using strategic tips and tools to help them qualify for the right home loan for the consumer.

Debbie Switts is one of eleven mortgage brokers and home loan officers in the state of Georgia to have received the coveted Lending Integrity Seal of Approval from the National Association of Mortgage Brokers. The new seal recognizes individual brokers and loan officers who meet the industry’s highest standards for knowledge, professionalism, ethics and integrity.

Click here for info about GFM - http://budurl.com/5credittips