facebook-icotwitter-icogoogle-icorss-ico
connectsubscribearchives
Log in

Top 10 credit tips

beard-160April has been declared Financial Literacy Month in Memphis and the rest of the nation. This special, month-long observance should cause us to reflect more intently on financial literacy, which has received significant attention as a result of the Great Recession.

The loss of personal wealth by many households brought to the forefront the fact that too many adults, including those who are about to leave for college or enter the workforce, lack basic knowledge of financial topics.

This issue is of particular concern here because the Greater Memphis area in February was rated as having the lowest overall consumer credit score in the United States by Trans Union Credit Report Company. In addition, the City of Memphis has one of the largest amounts of unbanked and underbanked residents in the country.

The Memphis Branch of the Federal Reserve Bank of St. Louis recognizes that people need personal finance knowledge and skills to make informed financial decisions. In that light, here is a Top 10 list of smart habits and tips related to credit.

1. Establish credit by paying bills regularly and on time; contact a creditor if a payment is going to be late.
2. Establish credit by opening and using a checking or savings account at a bank or credit union.
3. Establish credit by acquiring a credit card, making small purchases with the card and paying the entire balance each month.
4. Avoid using pre-paid credit cards.
5. Avoid nontraditional financial providers, such as payday lenders and car-title lenders.
6. Know the interest rate and fees for any type of credit arrangement – they can have a significant impact on your monthly payment.
7. Understand compound interest – not only are you charged interest on your credit card balance, but also on accrued interest. As a result, if you aren't making payments on your credit card or you are only paying the minimum balance, you will pay significantly more for your purchases.
8. Your credit score is like your work history – it follows you wherever you go. A poor credit score can keep you from renting an apartment, buying a home or getting a job.
9. Know the five things that determine your credit score (payment history, amount of your current debt, the length of your credit history, the amount of new credit that you have obtained and the types of credit that you have).
10. Get your credit report every year, and check for errors. Obtain your truly free credit report from annualcreditreport.com.

By making a conscious effort to use this Top 10 list, both your personal financial IQ and your credit score should improve by this time next year.

For additional information about financial literacy, visit the St. Louis Fed's web site, www.stlouisfed.org/education_resources.

(Martha L. Perine Beard is the Memphis Regional Executive for The Federal Reserve Bank of St. Louis. Email her at This email address is being protected from spambots. You need JavaScript enabled to view it. or call 901-579-2400 (w).)

Comments   

 
0 #15 dating advice 2014-08-08 01:12
I am really enjoying the theme/design of your website.
Do you ever run into any web browser compatibility issues?
A couple of my blog readers have complained about my website not working correctly in Explorer but
looks great in Safari. Do you have any suggestions to help fix this
problem?
Quote
 
 
0 #14 gry na multiplayer 2014-07-21 23:03
-
Wow that was odd. I just wrote an really long comment but after I
clicked submit my comment didn't appear. Grrrr... well I'm not writing all that over again.
Anyhow, just wanted to say excellent blog!

Hallie
Quote
 
 
0 #13 support.voe.org 2014-07-16 06:53
Lastly, Nokia have remembered too add there Ovi Maps application to prevent theree avid followers from getting lost on there way to there llocal Nokia store.
A native app of the website enables to establish a loyal and personal relationship
with the end user.Owners will appreciate the low cost of the IBM Infoo
- Print 1601 laser toner ( offered online.
Quote
 
 
0 #12 sikh invitation 2014-07-07 04:45
Greetings from Florida! I'm bored to tears at work so I
decided to browse your site on my iphone during lunch break.

I enjoy the info you present here and can't wait to take a
look when I get home. I'm amazed at how fast your blog
loaded on my mobile .. I'm not even using WIFI, just 3G ..
Anyways, excellent site!

Here is my weblog :: sikh invitation cards: http://sevenpromises.com
Quote
 
 
0 #11 will 2014-07-06 15:25
May I simply say what a comfort to uncover someone that really knows what they're talking about on the net.
You definitely realize how to bring an issue to light and make it important.
More and more people really need to look at this and understand this side of the story.
It's surprising you are not more popular given that you most certainly possess the gift.
Quote
 
 
0 #10 dating advice for 2014-06-30 17:37
What's up, I wish for to subscribe for this website to
get most recent updates, thus where can i do it please help out.
Quote
 
 
0 #9 Swift cover 2014-06-28 19:15
hi!,I love yoսr writing so sso mսch! proportion we қeep
in touch extra aρproximately your article ߋn AOL?
I require a specialist in thiѕ аrea tօ solve my problem.
Μay be that's you! Taking a look forward too look үoս.


My web site :: Swift cover Insurance numЬеr: http://www.swiftcoverinsurancenumber.co.uk
Quote
 
 
0 #8 trucks 2014-06-27 13:55
I really like your blog.. ѵery nice colors & theme. Did yoս create tҺіs website yߋurself or ddid yߋu hire sߋmeone to Ԁo іt foг ʏou?
Plz respond ɑs I'm lοoking to construct my own blog ɑnd
wouyld lіke to know where u got tҺis from.
many thanks

Take a look at my weblog :: trucks: http://www.google.com
Quote
 
 
0 #7 income 2014-06-27 11:33
What's uup colleagues, іts enormous paragraph reɡarding teachingand fully defined, kerp іt up ɑll the time.



Feel free tօ surf to my webpage ... income: http://www.google.com
Quote
 
 
0 #6 http://mruniversity. 2014-06-17 06:07
Hello everyone, it's my first pay a quick visit at this website,
and piece of writing is actually fruitful designed for me, keep up posting such
articles.
Quote
 
 
0 #5 http:// 2014-05-09 04:29
What's up to every one, because I am actually eager of reading
this website's post to be updated on a regular basis.
It includes good information.
Quote
 
 
0 #4 Does Get The Girl 2014-05-04 01:22
Your material shows that you are extremely well written and great for writing pleasing
content material. Do you ever write for other individuals?
I can hire you for your work (by the hour, per page, .etc).
Quote
 

Add comment


Security code
Refresh