As a consumer, your credit rating is one of your most important tools. Responsible credit management is more important than ever in these uncertain economic times. Here are 10 tips you can you can use to get into tip top credit condition.

1. Get to know your credit history. Lenders use your credit history to gauge whether or not you are able or inclined to pay them back. In shorthand, it’s a financial responsibility report and it’s a key input lenders will consider to decide if you’re worth the risk. By law, Canada’s three credit reporting agencies (Equifax, Experion & TransUnion) must provide your Consumer Disclosure report, which differs from the credit report lenders use, free of charge if ordered via mail or fax.
2. If you experience cash flow problems of an economic shock don’t hide – it’s the worst thing you can do. Instead, take a deep breath and call organizations that have lent you money. Explain the situation and tell them you want to work out a repayment plan. Remember, always pay something.
3. Pay bills on time: being one day late on a bill can affect your credit rating. And never go over the limit on your credit card. In fact, experts recommend not spending more than 65 per cent of your allowable credit limit.
4. Restrict the amount and sources of your credit. Loading up on high interest credit cards isn’t a good idea even if the rewards programs are alluring. Remember, credit is about a convenient payment method so make sure it fits your needs. It should never be used as money you don’t have.
5. Applying for too much credit over a short period of time can affect your credit rating, so, limit the number of credit applications. When cancelling credit sources, it’s not a good idea to cancel a source that has been long-held since this payment history can have positive implications for your credit score.
6. Always check your statements carefully to make sure they’re accurate.
7. Never sign a contract you don’t understand. If you feel pressured take the contract away and have a good read. Most salespeople will respect your right to be an informed consumer. If they’re not willing to wait, then the great deal you were about to get likely wasn’t all that great.
8. When deciding what to pay first, use the accelerated margin formula. First, set aside 10 per cent of your income. Then line up your bills. Divide each balance by each monthly payment. Pay the monthly minimum on each bill but take the lowest division answer and apply the 10 per cent you set aside. After this bill is paid go to the next lowest division answer until you’ve paid off your debt. See Credit Basics at Trans Union.
   
9. Get connected. The web has lots of great sites that explain credit in simple terms. A good place to start is the FCAC’s website .
10. Remember, cash is king. If you don’t have any savings, work on building some. It’s the best antidote for sleepless nights.

* Taken from Mortgage Journal – January/February 2009