Buy Second Hand Items To conserve your cash, and prepare for the tough times ahead, buy good-quality second-hand items, instead of splurging on high-priced items, which are sure to keep you sinking in a sea of debt. To stay afloat during tough financial times, keep your sights focused on reducing, as well as eliminating, your debt. Always be wary of co-signing a loan, especially if you cannot guarantee that the person will be able to pay his or her payments on time. Continually Keep Your Accounts Active Most creditors and lending agencies would rather prefer to see a verifiable credit history on their clients. If you wish to pay all your outstanding balances, and close all your accounts, your creditors won t be able to determine if you re in good financial standing, or if you re paying your balances on time. Once you find out the exact requirements, accomlish each one of them, and personally assess your credit standing. Also ensure that your buisness has at least five lines of credit with vendors who normally report to business credit rating companies and agencies. Report Your Transactions To The Major Credit Bureaus Once you determine the requirements of credit bureaus, the next step should be to report your transactions and financial undertakings to the major creidt burueaus today. By making sure that their credit report is in stable condition, aspiring business owners can increase their chances of receiving business loans which offer flexible interest rates. Every person is entitled to a free credit report each year, and a good place to start checking on your credit rating is by going to the three major credit bureaus like Experian, Equifax and TransUnion. Try to do a cluster of loan inquiries within a proper period of time, like one every two weeks, so that your credit score remains strong, and won't have to suffer major drops in credibility with lenders. According to credit experts, a credit score of 300 to 580 indicates that you'll only get approved for loans which offer very high interest rates. Aside from alerting you of any fraudulent activity or inconsistencies, a credit monitoring service can also help you effectively manage your credit. The Downsides of A Credit Monitoring Service - According to credit experts, it s quite impossible for each company to effectively monitor each of their client s credit report on an hourly basis.