Use Credit Wisely

Credit is something that is not easily understood and it has a lasting effect on your financial situation.  By keeping your credit score high, you are more likely to receive lower interest rates on loans and credit cards. These lower interest rates correlate with more money in the bank because you are not having to pay as much in interest. More money means more savings which means more success.

Here are 6 tips for using credit wisely and building your credit:

1. Treat all debt equally
2. Pay off your credit card balances every month; at the very least, your minimum balance.
3. Pay on time, every time
4. Avoid excessive use of credit
5. Make sure your credit ratio is under 30%. For example, if you have a $1,000 credit limit on your credit card, don’t carry a balance over $300 for very long.
6. Check your credit report. You are entitled to a free credit report every year at http://www.annualcreditreport.com/. Review it and report any errors you may see (even the “little”ones)

Clinton National Bank is an Equal Housing Lender    Member FDIC