Washington County Weekend Post e-edition
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Financial News The 10 "never-break" rules of good credit (BPT) - Some rules are meant to be broken - like the one about not wearing white after Labor Day. Others should remain sacrosanct, such as the rules of good credit. Those are the kind of rules that can make life easier and happier when you follow them - and help ensure your finances stay in good order, too. Unlike fashion rules, the rules of good credit are really not subject to interpretation or personal opinion. They derive from the formulae that credit bureaus and lenders use to calculate your credit score. So what are the 10 unbreakable rules of good credit? Here they are in descending order, a la David Letterman: minimum balance on your credit cards. Ideally, you would pay off the entire balance right away, but if that's not possible, pay more than the minimum as much as you can afford. Paying only the minimum balance means it will take years - and thousands in 10. Create a budget and stick to it. Your budget should cover everyday expenses and allow interest charges - to pay off your debt. for the smart use of credit. 7. When applying for a loan which includes applying for new credit cards - do so wisely. Comparison shop and make your applications (if you'll be making more than one) in a short amount of time, so that those credit inquiries will only count against your credit score once. Stretching applications 8. Always pay more than the over time, or making too many 9. Use credit cards wisely. Smart use of revolving credit not carrying a balance, paying the full balance immediately is an important component of a healthy credit score. Unwise use, such as running up debt, can lower your score. And in that vein ... Visit Us At Our New Location 4524 Dollar Drive West Bend in a short amount of time, can understand what impact - if negatively impact your credit any - the action will have on score. your credit score. 6. Your credit utilization ratio - the amount you owe compared to the amount of credit you have available - is a key factor in determining your 3. If you're in financial trouble, don't practice avoidance. If you can't pay your bills, contact your creditors to work out a payment plan, but know that not making minimum payments may negatively impact your credit score. Being proactive may not solve your financial woes but it can help minimize the negative credit score. Avoid maxing out impact on your credit. your credit - including credit cards or home equity lines of 2. Keep an eye on your credit credit. At any given time, try to score. Maybe you're in the keep three quarters to two habit of reviewing your credit thirds of your total available report once a year, or only credit free for use. check it when you're planning to apply for a loan, but it's 5. Don't immediately close a important to stay on top of credit card account just your credit score all the time. because it's paid off. Doing so Fortunately, the Internet has can skew your credit made it easy to monitor your utilization ratio. Before you credit report and score. close an account, be sure you Enrolling in membership of a product like freecreditscore.com can help you understand your credit. With enrollment, you get credit score alerts, identity protection alerts and fraud resolution support if you find an error on your credit report. Tim Reis 231194009 Investment Advisor Representative 262-338-0018 Securities and Investment Advisory Services Offered through Woodbury Financial Services, Inc. Member FINRA, SIPC, and Registered Investment Advisor. Reis Financial Services, LLC and Woodbury Financial Services, Inc. are not affiliated entities. 22 • Washington County Post Retail • 3 - 17 - 13 4. Practice identity theft protection measures. From shredding sensitive paper documents before trashing them, to keeping your PC's virus protection software up to date, it's important to take steps to protect your credit from identity theft and fraud. And, the No. 1 rule of good credit: 1. Pay your bills on time. A consistent, long-term history of timely bill paying goes a long way toward a healthy credit score. In fact, a solid payment history can pull up your score even if there are other negatives on your credit report, such as a high ratio of credit used to credit available. Not paying your bills on time or at all - is a surefire recipe for bad credit. Tips for managing your credit while traveling (BPT) - When it comes to the excesses and indulgences of vacation, you might like to think that "what happens in Vegas (or wherever you travel) stays in Vegas." Unfortunately, poor spending and credit choices made on vacation definitely come home with you, so it's important to take steps to protect your credit - both before and while you travel. If your spring and summer plans include vacation, keep these financial considerations in mind: Prepping for your trip: Planning ahead is one of the best ways to save money on travel. Book air tickets, lodging reservations and rental cars well in advance; prices rarely go down as your travel date approaches. Booking in advance also allows you extra time to shop around for the best possible deals. Comparison price everything - from airfare to attraction tickets - online. Remember to include Web coupon sites in your search, not just popular travel sites. Online review sites can also help you learn more about lodging and attraction options in far-away destinations. Shopping around can also help you decide if you're traveling at the best time for you, or if you have some flexibility to travel when prices are lower. While using a credit card to book online is a smart move credit cards offer consumer protections that cash and debit cards don't - be sure to pay off the purchases right away. If you know you won't be able to pay off the travel costs immediately, review your credit standing. Consider how credit purchases for travel might impact your credit score. Websites like freecreditscore.com can help you understand the impact certain credit decisions may have on your overall finances. Prepare for your travel plans by saving money toward that goal. Some banks have revived the tradition of a vacation club savings account, but you can set aside money in any interest-bearing account to fund your travel plans. While traveling: If you planned ahead, booked in advance and did your homework to find the best deals on airfare and lodging, you've made a good start. It's important to continue making good financial choices while on the road. Take steps to protect your cash, credit and identity while traveling. Some cash will likely be required on your trip. Never carry all your cash in one place; instead, split it up between multiple bags, or have a traveling companion carry some of your cash. When you arrive at your destination, store cash in the hotel safe and only take out what you think you will need for the day's activities. When using your credit card on the road, never let it out of your sight. Be aware of "shoulder surfers" who may stand behind you in a ticket line and use a smartphone to snap a picture of your card. Carry just one card for use and store a backup in the hotel safe in case of emergencies. Leave unnecessary cards and identification - such as your Social Security card or wholesale club card - at home. Never use a public Wi-Fi connection - such as the ones found in airports or hotels - to access your online financial accounts. Enterprising crooks have been known to use special devices to hack account information from unsuspecting travelers. Once you're back home, take another look at your credit and keep a close eye on financial statements and credit accounts for a few months. Catching fraud early may help mitigate its financial impact.