Step 4 – Manage Your Credit

Don't believe the following common misconceptions:

• If I catch up, it won't show on my credit report
• If I pay a small amount, it will count as a full payment
• It will be overlooked if I have a good reason for not paying
• You must give your permission for a credit report to be issued
• When paid, the bad debt will go away
• I'm not responsible for debts on joint accounts or co-signed accounts if they are not my purchase

It is o.k. to have credit, but not too much. Creditors want to see that you have successfully managed credit. The most important skill in managing your credit is to learn how to pay your bills on time.