Eric Chew’s Top 5 Credit-Savvy Tips for Smart Credit Management

Eric Chew’s Top 5 Credit-Savvy Tips for Smart Credit Management

If you’re like most people, credit management is probably not at the top of your list of fun things to do. However, it is a crucial aspect of personal finance that can impact your life in significant ways. Here are Eric Chew’s top 5 credit-savvy tips for smart credit management that can help you take control of your financial life.

1. Check Your Credit Report Regularly

Your credit report is a record of your credit history, including your credit accounts, balances, and payment history. It’s crucial to check it regularly to ensure the information is accurate and up-to-date. You can access your credit report for free every year from each of the three credit reporting agencies: Equifax, Experian, and TransUnion. By reviewing your credit report, you can spot errors and fraudulent activities early before they cause significant damage to your credit score.

2. Pay Your Bills on Time

Your payment history is the most significant factor in determining your credit score. Late payments can negatively impact your credit score, so it’s essential to pay your bills on time. Furthermore, paying your bills on time can also help you avoid late fees, penalty fees, and additional interest charges.

3. Keep Your Credit Utilization Low

Your credit utilization ratio is the amount of credit you’re using compared to your credit limit. It’s calculated by dividing your credit card balances by your credit limits. A lower credit utilization ratio demonstrates that you’re responsible with your credit and can positively impact your credit score. Eric Chew suggests keeping your credit utilization below 30%.

4. Maintain a Healthy Mix of Credit Types

Creditors prefer to see a diversified credit history. It shows that you can manage different types of credit, such as revolving credit (like credit cards) or installment loans (such as car loans or mortgages). Eric Chew recommends maintaining a healthy mix of credit types.

5. Be Mindful of New Credit Applications

Every time you apply for credit, such as a credit card or a loan, the creditor pulls your credit report. This action results in a hard inquiry on your credit report, which can negatively impact your credit score. Multiple hard inquiries in a short period can signal that you’re desperate for credit, which can also hurt your credit score. Eric Chew suggests that you limit the number of new credit applications you make, and avoid applying for multiple credit lines at once.


Managing your credit can be overwhelming, but Eric Chew’s top five credit-savvy tips can help you stay in control of your credit. By regularly checking your credit report, paying your bills on time, keeping your credit utilization low, maintaining a healthy mix of credit types, and being mindful of new credit applications, you can improve your credit score and maintain a healthy financial life.

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