Tips On Taking A Strategic Approach To Credit (NAPSA)—People havedifferent attitudes about credit. For some, taking on any kind of debt Apply for a secured credit card or loan, which is typically easier to qualify for than unsecured credit but will require some kindofcollateral in order to open the account. If you have too much debt for your income, here are some steps you can consider: When possible, consider consolidating debt into a lower-inter- is to be avoided. For others, credit is necessary for buying what they want, when they wantit. The fact is, credit is neither inherently good nor bad—it’s simply a tool that requires responsible use. And like anytool, the outcome depends on the skill with which you useit. What Type Of Credit Is Available? Approachingcredit strategically starts by understandingthe different types of credit. It’s important to carefully consider which type of credit to use for each financial goal you have. For example: Credit cards can be used for everyday purchases, unplanned expenses and large purchases. ePersonal loans or lines of credit can be used for large purchases, unplanned expenses and debt consolidation. eAuto loans are for new or used vehicles, or refinancing a car loan to lower the interest rate or payment. Private student loans help pay for tuition and othereligible education-related expenses. Home equity loans or lines of credit can be used for major repairs or improvements, debt consolidation or other major purchases or expenses. Mortgage loans are for home purchases and/or refinancing to lower the interest rate or payment. Setting Yourself Up For Success Qualifying for these different types of credit will include an examination of your credit history—the track record you’ve established managing credit and making payments over time. est-rate loan or account. As you build your credit portfolio and you’re approved for higher credit lines, it remains important to stay current on all your payments. If you don’t have an established history, you may need to build one. There are credit products available that use nontraditional information as a substitute for credit history. Once again, strategy comesinto play. For example, if you don’t have enough credit history, you might consider applying for and responsibly using a cell phone account, secured credit card, or gas or retail credit card. You could take out a loan with a co-borroweror a loan secured with savings or a CD. To learn how credit scores work, you can visit myfico.com. If You Have A Less-Than-Perfect Credit History, You Should: Be sure to pay bills on time. eCheck your credit reports annually for free at annualcredit ePay off high-interest-rate debtfirst. e Build your personal savings. Develop a budget and main- tain it. Consider whether you have other income sources you may want to disclose when youfill out an application for credit. Consider whetherto include a co-borrower on your loan when you decide the timeis right to apply. As you build your credit portfolio and you're approvedfor highercredit lines, it remains importantto stay current on all your payments. Thirtyfive percent of your credit score is based on payment history. As you make regular on-time payments to your loan or credit card, you can begin to build a good credit history. More important, a late payment Correct any mistakes on your credit reports. ePay down high-interest-rate debtfirst. on your credit report could lead to being charged a higherinterest rate or being declined for credit. Getting Information About Credit How you manage yourcredit can help you reach your goals—or it can hold you back. Learn more about how to use credit responsibly to achieve your goals by visiting the Smarter Credit™ resource center at www.wellsfargo.com/ amount due. eAvoid opening new credit accounts you don’t need. To learn more about yourcredit options, visit www.wellsfargo. com/creditoptions. report.com. ePay more than the minimum smarter_credit.
