The firstcredit cards were believed to have come about in the 19th century,starting as exclusive for only some companies, banks, and industries, and alsodirectly between a seller and his custome…
The firstcredit cards were believed to have come about in the 19th century,starting as exclusive for only some companies, banks, and industries, and alsodirectly between a seller and his customer. Soon companies began accepting eachothers cards, and the birth of credit systems like American Express, Visa andMasterCard was the result.
Todaythese plastic credit cards may be taken for granted by the busy urban citizen,but in the midst of economic crisis it pays to be frugal and vigilant aboutpayments of any kind. Even if a breadwinner in the family is earning steadilymore than enough, some people get taken by surprise by sudden economic lows.This is why it is advisable to be active in keeping spending methods at anoptimum, and to do this one has to be a reliable creditor, maintaining goodcredit. This can be measured and improved mainly by maintaining a good creditscore.
Creditscore represents how credit-worthy a customer is, and is based on credit filesand reports retrieved from credit bureaus or consumer reporting agencies. Thisscore is important because it is used in assessment of credit risk, like whenbeing considered for employment, or for leasing an apartment or property.
Differentcountries have varying methods and protocol for using and taking credit scores,but generally one can receive a copy of assessment result, and anyone can learnhow to improve credit scorerightfully. This begins, of course, by checking credit report. Doing thisallows one to see not only how much is being spent in how much time, but alsoif errors have been made in the report, such as late payment or inaccurateamount owed. Faulty reports can be disputed with the credit bureau or reportingagency.
Anothertip is to arrange for the bank to send reminders when payment is due, in orderto avoid late payment and penalties for this, which will affect credit score.Some really busy people enrol in automatic payment arrangements.
A veryuseful and advisable tip on how toimprove credit score and even credit management is by making a payment planthat allots a larger part of the available budget for paying cards with highestinterest. Minimum payments can be maintained in the less demanding accounts.Also, it is better to pay off debts than move or revolve it among differentcredit accounts. In addition, making small monthly payments on time and infull, such as on a gas store card, can show positive results in credit scoring.
If payingbills on time, or catching up and then staying current with payments is justnot achievable at the moment, a discussion with your creditors or a creditcounsellor is in order. Remember, reading self-help articles can only do somuch, and benefit the more able person. Sometimes the best option is to getprofessional help and reconsider ones lifestyle.