If you'd like to discover the secrets of establishing and maintaining a positive credit history (to prove your creditworthiness to secure an approval for a home mortgage, car loan, furniture purchase, cellphone plan, etc.), then this might be one of the most important articles you'll ever read.

Do you know that all credit card agreements are legally binding contracts, most of which contractual arrangements authorize the credit card company to raise your rate if you have missed or are late on any of your bills, not just your monthly credit card payments? Because most credit card holders don't read and retain their credit card agreements, it is imperative that you read and retain your copy.

Missing or being late on your monthly credit card payments can cause you to default on your credit card debt(s). If you are not careful, your erratic payment activity will negatively reflect on your credit history and can also deny you additional credit in the future until you have resolved your debts in full. To avoid problems, read and retain your credit card agreements. You'll be very glad you did.

Although it is in your best interest to make timely monthly payments to help your credit rating, paying the bare minimum can adversely affect you, resulting in your remaining credit card debt to accrue interest charges. Despite what the minimum payment due is stated on your billing statement, your credit card issuer(s) is actually showing you a small portion of your actual balance

In fact, if you don't make new purchases on your credit card, the interest can accumulate and the amount of credit card debt that you accumulated may take you several months or even years to pay off your credit card debts. Sadly, the interest can accumulate at an alarming rate if the balance is not paid in full at the end of the month. Don't be misled by the minimum payment imprinted on your credit card billing statement. Better yet, you should responsibly budget your finances and pay off your debts in a measured, timely fashion. Doing so will make it easier to re-establish positive credit after your debts are paid off in full.

If your credit card(s) carries an annual fee, don't close that account if it still carries a balance. Instead, call your credit card issuer and ask the customer service representative if they have another card that doesn't carry an annual fee to which your current credit card account could be transferred. Surprisingly, an ever increasing number of credit card issuers are willing to comply, resulting in your keeping the account open but eliminating the annual fee. If your credit card issuer doesn't have a card without an annual fee, don't fret. Simply pay off your current credit card debt in full as soon as possible; however, do not close the account because your timely, monthly payments will reflect positively on your credit report.

Note: Never close a credit card account on which there is a remaining balance. If you think your credit card company is "friendly" now, you should see their "wrath" arouses later once your account has been closed.

Making unintended purchases is a risky consumer behavior, which will result in your being pushed over the credit limit, at which point you will bombarded with over-limit fees and penalties. Ultimately, your credit score will be greatly lowered by your inability to make timely monthly payments.

Did you know that a poor credit history can ruin your credit score? Have you recently checked the accuracies of your Credit Report? If not, it is imperative that you get your credit report and see why your credit score is so low. Because most credit card issuers report to all three major credit bureaus, you must get all three credit reports.

Remember, a good credit history can help you qualify for a future new home mortgage, automobile loan, apartment lease, new job, etc. It is advisable that you check your credit history, from all three consumer reporting agencies, at least once a year. Moreover, you must review and correct any errors that might negatively affect your current or future credit rating. To obtain copies of your credit report, call or write the three major national credit reporting agencies.

Equifax Credit Information Services, Inc.
P.O. Box 740241
Atlanta, GA 30374
Toll-free: 1-800-685-1111
Web site: www.equifax.com

Experian National Consumer Assistance Center
PO Box 2104
Allen, TX 75013
Toll-free: 1-888-397-3742
Web site: www.experian.com

TransUnion, LLC
PO Box 1000
Chester, PA 19022
610-546-4600
Toll-free: 1-800-888-4213
Fax: 610-546-4605
Web site: www.transunion.com