Go to annualcreditreport.com to review your 3 credit reports (Experian, TransUnion, and Equifax) free one time each year.

It is wise to review your credit reports for mistakes and accuracy (negative information must come off after 7 years in most cases). Consider reviewing 1 report every 3 months (rather than piling on all 3 at one time). Also, consider creditkarma.com to track your credit utilization and approximate credit score (provides your TransUnion and Equifax credit scores). This site is free! Just ignore all of the advertising that makes it so free.

Your credit report, and ultimately your credit score, can effect your job, where you live, your insurance costs, and the amount of interest you will pay on all kinds of loans

This is worth your time as it could easily save you thousands of dollars over your lifetime (especially when it comes to obtaining a mortgage when buying a home) and reduce the stressors of everyday life. Getting a handle on your credit will give you more control of your life.

Understanding how the credit score is created will help you increase it over time

35% deals with you paying your debts on time, 30% deals with how much credit you use in relation to what is available to you, 15% deals with the length of your credit, 10% deals with new applications for credit, and the last 10% deals with the different types of credit you have used. Here is a pie chart that illustrates this visually: credit score pie chart

Two simple ways to increase your credit score involve paying your bills on time and increasing your available credit, while not actually using more credit. 

Don’t complicate this. Set up your bills on automatic payments and that means getting organized with your money. Consider contacting your credit card companies and requesting a credit limit increase while not actually using the extra available credit (for example, if you have a $1,000 limit, request $2,000 or $3,000 and they will usually say yes or counter with a smaller increase). As that number is raised, your credit utilization percentage will go down (get it under 30% and ideally, under 10%). The credit score goes up from there.

Work at getting your credit score to 760 to get the best possible interest rates on a loan.

It is not necessary to keep going beyond that number so don’t waste a lot of time trying. Just work at getting to that number by using your credit wisely, while reducing your actual debt. Developing a high credit score does not require you to go into deep debt or pay interest on your credit cards or many other erroneous things you may have heard or scene. Understand how this game is played and play it well!

A credit card is a stupid piece of plastic, nothing more, and nothing less

It is not evil, nor is it heavenly. The person handling that card will determine how it will be viewed as time goes on. Use it responsibly or get rid of it. It’s that simple.

The interest rates and fees can devastate a person who is unorganized and irresponsible with their credit card(s). 

Here are the basics that you must follow if you want to take control of the situation: Pay it off in full each month. Never be late. Never go over your limit. Never take a cash advance. Finally, never treat your credit card as some device that helps you live beyond your means.

Learn about all of the benefits of owning and using a credit card.

Fraud protection, purchase protection, price protection, extended protection, return protection, auto rental protection, and a cash rebate are a few. Take the time to read your benefits guide the credit card company sent you (you can look it up online if you do not have the paper version at home). Those benefits are free, use them when they apply!

Your credit and how you use it, is your responsibility. 

Do not sit around and wait for others to come in and save the day. Take control of the situation and fix where fixing needs to happen. Build where you need to build. This is on you! Educate yourself with the details and then take action where needed.