Being mindful of credit use

Credit can be both a boon and a burden for consumers because how they use it can affect their credit score.

A recent story for Georgia’s Macon Telegraph newspaper noted there are ways for consumers to ensure their credit card use doesn’t ruin their credit score. Jan Baggarly is coordinator for the state’s Bibb County Extension Office, and she noted in a piece for the paper that consumers should pay off their credit card debts in full and avoid using all their available credit.

“Unless you pay off your balance in full each month, using credit cards to pay for things such as food, movie tickets or other consumable goods is unwise,” Baggarly said.

Consumers should also keep tabs on their credit report, which can show them how lenders view them as potential customers. Along with credit card debt, credit scores are calculated by looking at a person’s payment history and how much they owe.

When faced with too much debt, there are options for consumers. One of those may be getting a debt consolidation loan. Consumers can use their home as collateral for the loan, which they can use for debt help. Doing so allows the consumer to have all their debts paid through one loan.