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A Guide to Managing Your Credit

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One of the most important metrics we can pay attention to is our buying power. When your heater needs replacing, the couch needs an upgrade, or it’s time to buy that special piece of jewelry, knowing your credit will allow you to make those purchases when you want to be a great feeling. But what if your credit is less than stellar? Let’s look at five steps you can take right now to manage your credit so your full buying power is available when you require it.

Pay Bills on Time

Credit is a reliable purchasing option for those who require a financial infusion when a bigger purchase comes up, but each month, buyers are required to make a payment back toward the total amount owed. Paying bills late can have a detrimental effect on your credit. A simple way to make sure bills are always paid on time is to use one master calendar to keep track of when each bill is due.

Treat All Debt Equally

It’s tempting to think of some debts as more important than others. When you have used a purchasing option to buy a meaningful piece of jewelry, paying that bill on time is not more important than paying others simply because it represents something important in your life. Treating all debt equally is a great way to manage your credit since every type of bill has the same weight on your credit score. This means that paying at least the minimum owed for each will work towards increasing or maintaining your credit score.

Pay Off High-Interest Debt First

Prioritizing debt is essential when interest rates on some debts are higher than others. Focus your attention on the debt with the highest interest rate and pay it down first without missing payments on other debt. Managing credit effectively by paying down bills with the highest interest will decrease your debt-to-income ratio, increasing your credit score.

Build Good Credit

Managing your credit can also include making smart purchases that increase your credit score by showing lenders you are a low-risk borrower. One way to do this is by utilizing purchase solutions to pay for larger items like appliances or electronics. Payment terms can be generous, and payment history will be reported to credit bureaus, increasing positive credit history quickly.

Companies like Okinus Credit Solutions even offer zero money down options to assist customers in getting big-ticket items fast.

Monitor Your Credit Profile

A simple way to manage your credit is to watch your credit history profile to see changes or quickly spot errors. Big credit reporting bureaus have free credit reporting options for you to see where your credit score stands to help you manage your score and make improvements.

Managing your credit can start today when you use a purchase option. Okinus Credit Solutions makes getting started simply by offering a purchase solution for customers who need a pricey item but want alternative payment options that will assist with credit management. Contact our experts at Okinus to choose a purchase option to set up a plan for your next furniture, appliance, electronics, HVAC equipment, or jewelry need.