What is credit management? In short, checking your credit report at least every couple of months. By doing so, you are in essence monitoring the activities that determine what your credit score is and will be. And, consequently, how you are able to move through this world financially. The way you move can be a smooth or rough path to travel. The way you manage your credit will determine which path you take. By using the following 3 credit management principles, you stand a much better chance of moving smoothly.

1.Old Credit.-The older your credit, the better it is. The longer you have had an account, an account with a clean payment history, the better. If you have older accounts make the payments on time and continue to do so. If you have newer accounts you obviously can't turn back time. But what you can do is have a close friend or family member add you to one of their older accounts as an authorized user. For example, your Mother who has a good credit history on her accounts, can designate you as an authorized user. Your credit now reflects her good payment history. As a result, your score will go up. And Mom does not need to worry because all of this can be done without you evern having a card to use.

2.Non-reporting Creditors-Some creditors can hurt your credit simply in the manner they report to the major credit bureaus. Or, in some cases, by not reporting to the credit bureaus at all. Some credit card companies will report your credit limit as the balance of your account. If your balance each month is used and reported as your total credit limit, it looks like you have maxed out your card. This will lower your score. Replace these credit card companies as soon as possible. By regularly checking your credit report, you will be able to determine what companies are reporting this way. Simply close those accounts and replace them with companies that do not use your credit limit in reporting to the bureaus. If you have accounts that reflect a timely payment history and those creditors aren't reporting to the bureaus, replace them as well. They are lowering your credit score by not reporting.

3. Usage Rate-This one is simply. Do not use your entire credit limit every month. Even if you pay it off entirely, your score will go down. Why? Because by maxing out a credit card each month, regardless of the amount, a 50% usage rate will be shown on your report. You want a usage rate of 25% or less to be showing on all your credit accounts. For example, if your credit limit is $3,000 and you pay that same amount off at the end of the month, your credit report will still show a $1,500 balance. On this particular account you would never want the balance showing to exceed $750. Any balance over and above 25% of your total credit limit will affect your score negatively. Even in this case, where you have paid off the card completely at the end of the month.

Want to travel on a smooth financial path? Pull your credit report and employ these 3 things as part of your credit management strategy and, not only will your credit score go up, but you will find that you are teaching yourself how to manage money better. Now that is a really smooth path to travel. Happy trails!