Credit Management & Wealth Building During COVID-19

Learn why it is imperative that “you manage your credit effectively yourself” in any economic environment…


When it comes to credit management it is important that you realize that it is your responsibility to manage your credit effectively in a proactive manner and not depend on credit repair and other credit improvement companies–when you have the opportunity to do what needs to be done on the front end.


Effective credit management (even during the COVID-19 Era) is not as hard as you may think if you make the commitment to get out in front of your credit transactions and learn wise credit and money management strategies on the front end.


Even if you have made credit mistakes in your past you can now start on a more effective path as it relates to the management of your credit!


In this discussion you will learn how you can take control of your credit management and manage your credit effectively throughout your lifetime, or during the period in your life that you desire to use credit.


By learning and applying the following principles, you will have no problem effectively managing your credit from this day forward–thereby ensuring a more prosperous future for yourself, your family, your loved ones and the society at large in which you live.


  • You must have a basic understanding of credit

It is important to realize that you don’t have to be a credit expert to manage your credit at a more beneficial level, however you must have a basic understanding of how credit works so that you can make credit work for you as opposed to against you!


You must know why you are using credit and you must know the purpose of credit so that you can use credit wisely and achieve more during your lifetime.


  • You must know when to use credit

It is important that you realize that whether you have poor credit or great credit you will be bombarded by creditors, advertisers, marketers and others who will promote products and services that may or may not be beneficial to you and your family from a credit perspective.


Therefore, you must know when to use credit and how to select the credit that will be in your and your family’s best interest!


The key types of questions that you must ask are: 


If I make a major purchase using credit cards and purchase a car (financing involved) at this time–what effect will that have “credit wise” on my intention to purchase my first home 18 months from now?


If I use credit to make a major purchase, do I know the time frame that I intend to pay off the creditor?


If I choose to pay off my current creditor with a “zero promotion” offer from another creditor, have I run the numbers to determine my real savings and my real advantage of doing so “prior to” the balance transfer and payoff–not after?


Those, and other relevant questions must be asked and answered appropriately up front–not after the fact!


  • You must have an effective payoff plan in place “prior to” your credit use

If you use credit in an advantageous way–you will position your finances in a manner where you can pay off your credit debt on a monthly basis and in the case of balance transfers and promotional offers that you may sign up for–during the promotional period or the zero percent interest period so that you can avoid or eliminate interest or other fees.


By having a payoff plan “prior to” your purchase and by adhering to that plan you put yourself in position for more effective credit management as well as maintaining or improving your credit position and hence credit score.


  • You must know how the credit scoring system works

It is important to know that there are two scoring systems that are in wide usage (FICO and VantageScore) and others that are used by credit bureaus to a lesser degree.


It is important that you learn about the credit scoring system in as relaxed a manner as possible. 


While learning you don’t want to be stressed, worried or otherwise distracted as the answer to your concerns could lie in front of you.


Although there are differences and similarities in many of them–the key is to know how to keep Negative information off your report, Utilize your credit appropriately, keep older accounts open as Time length is important, have different Types of credit and keep Inquiries (hard pull of your credit) at a low level  and you will have no problem managing and/or improving your credit–regardless of the version or model that is being used!


Keep in mind that when it comes to credit scoring models, there are industry specific versions, newer versions, older versions, in-house versions and other versions all on the market at the same time–the key for you is to know which version your creditor (or potential creditor) uses–and then proactively know what is in that version (your score or relevant score range) prior to formally applying for credit.




Your effective use of credit can be made easier if you have a basic understanding of credit, you know how to use credit wisely, you have a realistic payoff plan in advance and you know how the credit scoring system works and how it will affect your usage of credit.


You don’t have to be overly concerned about the scoring models as long as you pay on time, you use your credit sparingly (particularly your revolving debt), you pay off your debt in a timely manner, you have a good credit mix or different types of credit–and you keep your inquiries low.


By gaining a basic level of credit understanding at this time you put yourself well ahead of those in the general population and your effective credit management will now be made easier if you apply the concepts in this discussion and you are one who desire to manage your credit effectively from this day forward and throughout your lifetime, or the period that you desire to use credit during your lifetime.


By responsibly doing what you need to do on a consistent basis your credit score will reflect that responsible use over time and will put you in position to attain your credit goals and what you expect to happen at the various stages of your life.


Effective credit management starts with a thought by you, that you really want to manage your credit better and a real desire (by you) to find the best or appropriate way to do just that in a manner and style where excuses are a thing of your past!


All the best to your credit management success during COVID-19 and during tougher times ahead that are yet unseen…


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