You need to be responsible in managing your personal credit and loans because of three major reasons.
1. You need to have a credible credit history. Your credit score matters a lot to your lenders. And how you handle your credit and payment history directly affects your credit score. Bear in mind that your credit and payment activities are recorded in your credit history. A credible credit history allows you leverage on future financial prospects.
Being a responsible borrower involves being prudent in settling loan payments. Furthermore, be wise in using your credit card. Use it within the bounds of the agreed terms and conditions so that you can avoid penalties associated with irresponsible use of your credit card.
2. Rid yourself of the pains of paying unnecessary interests and penalties. You can keep your credit to a manageable level when you settle your loans on time and completely. If you do this, you avoid paying extra amounts for interest and penalties.
However, if keeping up with your due dates is difficult for you, make use of the gadgets that are capable of providing alerts and reminders. Marking your due dates on your calendar in advance may also help. You can also arrange with your bank to debit your account automatically when your credit falls due.
3. You need to build and maintain good rapport with your lenders. You build strong ties with your lenders when you develop good paying habits. When credit firms investigate your credit history, your lenders can give a good report about you. You increase your chance of getting future credit with good credit terms, low interest and high loanable amounts.