Page 11 - August 2022 Issue.indd

that the American consumer is slipping
from solid fi nancial footing.

With inflation running at historic
levels and no real end in sight, how
you manage your credit during these
challenging times is critical. Because you deserve qqualified, llocal representation
when managing life’s important issues.
If possible, try to avoid using credit
cards for life’s necessities, like food and
housing expense. Some landlords have ? ESTATE PLANNING 300 Market Street
started to accept credit cards as payment ? RESIDENTIAL & COMMERCIAL Suite 104
for monthly rent. “We are increasing REAL ESTATE AND SETTLEMENTS Denton, Maryland
your rent by $500 per month but will ? LLC FORMATION & BUSINESS LAW 21629
now accept credit cards for payment”. ? MUNICIPAL & ENVIRONMENTAL LAW
This is a financial disaster waiting to ? GENERAL LEGAL COUNSEL 410.310.1774
happen.
Our attorney, Patrick Thomas, and our Settlement shayman@mlg-lawyers.com

As household cashflows get squeezed Agent, Sandy Hayman, are available to travel to your www.mlg-lawyers.com
it is important to maintain good credit preferred location.
so that your access to credit is not
hindered.

First, make your monthly payments
on time. Payment history is the most

significant factor of your credit score at
35%. Regardless of how tight things may
get in your monthly cash fl ow always
make the minimum payment required.
Even though the minimum payment
barely pays the interest due for that
month it is the fact that you made the
payment that is most important, not
that you paid more than the minimum.

The next most crucial factor in your
credit score is the balance that you
owe in relation to how much available
credit you have, which is 30%. Keeping
balances at or below 30%-40% of
available credit will maintain a good
credit score. The closer you get to
maxing out your credit cards the more
your credit scores will drop. This is
where having several credit cards could
be benefi cial.

First, let me say that I am not advocating
for you to get as many credit cards as
you can. Two major cards, like Visa,
Mastercard or Discover and 3-4 store
or gasoline cards is plenty. Some people
can manage many more and keep
balances low, but for some people, the
more credit cards you have the more
you will be tempted to use them. In
times like these where we have been
conditioned to spend after not spending

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