In honor of National Credit Education month, our team at WSCE has created a list of 5 credit tips. We hope that this list will help you develop the necessary skills to manage your finances and credit efficiently and effectively. How you manage your credit can either set you up for financial success or can create a costly uphill battle of paying the debt for many years. Establishing positive credit can open many doors – from an apartment to a car loan, or buying a home. It is never too late to develop a strategic plan for managing your credit.

1. Choose your credit card carefully before opening. Before opening a new credit card be sure to read the fine print and know exactly what you are signing up for. It is a great idea to compare and contrast a few different cards before making a final decision. Be sure that you are aware of all fees and your interest rate.
2. Be aware of how much you are charging to your card. The best way to avoid decreasing your credit score is to be aware of what you’re charging to each of your credit cards. Make it a habit to check your accounts online and keep tabs on your spending. If you begin to approach the 30% utilization on one card, make a payment and switch to using another.
3. Set up balance alerts. The best way to remember to check your balance is to receive balance alerts via text message or email. This way, you will know when you’re getting close to the 30% utilization threshold.
4. Get into the habit of paying mid-cycle. If all of these tips seem like too much work for you, get into the habit of paying your balance twice per month instead of once. As long as halving the time between your payments will consistently keep your credit utilization below 30%, setting up automatic twice-monthly payments to your card is a great idea!
5. Raise the credit limit on your cards. If it is tough to avoid the 30% utilization mark, another solution is to request a credit line increase. Be aware that when you request a credit line increase from your issuer you might initiate a hard inquiry to your credit report. This can cost you a few points on your credit score in the short-term, as long as you’re practicing good credit habits, it will bounce back shortly.