Know Your Score

A sign in a shop reads: " IN GOD WE TRUST, ALL OTHERS PAY CASH."
 
Not too far off from the truth in today’s world.
 
Available credit has tightened considerably over the last year, and now your credit score is even more important to securing loans and credit. If used properly, credit can assist your purchase of a house or car and help to efficiently manage bills. It's using credit in excess that will get you in trouble.
 
To that end, here are some tips to manage your credit properly:
 
First and foremost, get your free credit report annually (www.annualcreditreport.com , not from the other one on TV -- it’s not really free). It’s probably worth paying the $5 or $6 to buy your score from at least one agency.
 
Second, get a basic understanding for how the score is calculated.
 
Third, upon reviewing your credit report and score, see if there are easy things you can do to improve the score. And make your payments on time! Be very cautious of the “extras” out there (e.g. credit repair services, credit notifications services, credit counseling and negotiation services). Many of these businesses and agencies are legitimate, but practice due diligence before contracting with one. You can make most improvements with just a little bit of effort.
 
It’s extremely important for Young Professionals to take charge of their total financial picture. While credit and debt is a large part of what caused the problems last year, it is an integral part of how our system functions.