Easy Steps to Build Good Credit

Right now it doesn't seem like anyone wants to talk about credit issues, with the idea of the economy slumping further and money tight all around. But actually, it's the best time to improve your credit.

First, take advantage of near-historic low rates. We all hear and see the commercials for crazy low mortgage rates, and yes, it's a good time to buy a house, but this low rate excitement also applies to your credit card. Right now almost everyone should be in a position to negotiate their rate with their credit card company.

How to negotiate?

• Pick up the phone. They won't do this over email, so just call.

• Ask straight out. "Are there any opportunities to lower my credit rate right now?"
• If they hesitate, remind them how long you've been a customer, and what other banks like Capital One (probably the best all-around credit card in the industry) are currently offering.
• If they STILL say no (reasons for this could be a late payment on your part, or something similar) then ask them how they determine eligibility for a lower rate--ie, they should tell you how you can be a better candidate for a lower rate.

Second, take advantage of balance transfer offers. Often cards will offer twelve months of 0% financing on a balance transfer, or similarly low rates. The only thing to watch out for is transfer fees, which can out weigh the money you'd save. Just calculate the interest you'll save and see if it works out in your favor.

Third, shop around. While overextending yourself is never a good idea, having open card accounts with high limits and little or nothing on them is good for your score. Part of your credit score is determined by a ration of available to used credit. If your card company won't reduce your rate as much as you'd like, many banks are offering very low rates--it might be in your best interest to open a new card.

Fourth, watch the spending (obviously, I know). This one has been creeping up on me. With my job slowing down recently, and less money coming in, I've been spending at the same rate as ever (eek). I've been trying to cut down my spending because my carefully reduced credit balance is buoying up again. It's like weight loss--all your hard work will be for nothing if you don't keep your eye on it!

Good Luck Everyone! See the vid for a success story!

And as always, check me out at my blog.