The best habit you can develop is to be actively involved in managing your credit. Don't worry, it really doesn't take that much time. You simply have to decide that you're going to take charge, and then do it.

Get Informed, Stay Informed

You are already taking great steps in the right direction. By reading this book, you now know more about improving your credit than the average consumer. The world is full of inaccuracies and myths, and consumers who don't pay any attention to their credit. This is not your problem.

As time goes on, laws and lending practices will undoubtedly change. New credit-scoring models will emerge, and noncredit-related scoring will increase. As that happens, keep your ears open and find out how it works. You can only benefit by staying up to date on how your information is managed.

Know All of the Scores

Starting now, find out what everybody is saying about you. There are many different types of scores floating around, and you are being graded. Be aware that you have more than just one credit score. First, there is the FICO credit score, the granddaddy of them all. This is used in the majority of lending decisions, but not all of them.

Each of the three major credit-reporting companies issues its own scores as well. Based on differences between the information kept at these companies, your credit scores can vary. In fact, you might even purchase a credit score from a major credit-reporting company, but not know if it is your FICO score or a proprietary score. Get as many details as you can before you purchase scores.

Besides credit scores, there are a variety of privately developed scores that help businesses figure you out. They predict how profitable you will be, how likely you are to default or declare bankruptcy, how likely you are to make insurance claims, and more. These scores typically are not available to you, but you might see them become available in the future. If so, make sure you take advantage and understand how companies view you as a consumer.

Read the Fine Print

You already know that agreements can contain some nasty provisions. However, most people still do not read the fine print. Instead, mail from the credit card companies goes right into the shredder (or worse, the trash can). If you don't understand what you are getting yourself into, you can get blind-sided by something that you should have seen coming.

Along the same lines, you should always glance over your credit card statements for any red flags. You want to make sure the interest rate they are charging you is the same as what you expected it to be. Likewise, look for unexpected fees, especially late fees if you did not pay late. Finally, check for charges that you did not initiate. If you find anything unexpected, you should contact your card issuer immediately and get it fixed. You can save yourself expensive fees, expensive credit damage, and expensive, time-consuming identity theft.

If you can stay on top of your loans and your finances, your credit should show improvements. Develop the habits that allow you to have a strong foundation, so that when surprises pop up, your life will be a little bit easier.