Rainy day accounts can prevent credit damage

With the April 18 tax deadline quickly approaching, a number of consumers have already filled out their forms and submitted them to the Internal Revenue Service. If you're among this group, you may want to take a break from all those numbers and figures, but now may be the ideal time to take a careful look at your finances.

Because all of your financial information may be readily available, reviewing your money management strategies now may actually be more convenient than waiting until later in the year.

In the spirit of April being National Financial Literacy Month, Nebraska news provider KHAS suggests consumers focus on creating an emergency fund, also known as a rainy day account.

An emergency fund is separate from a savings account in that it should only be used for a sudden financial crisis, such as an unexpected bill or a medical emergency. Having $500 to $1,000 set aside in this type of account can prevent you from taking on a credit burden that you cannot afford which may in turn lead to bad credit.

However, a rainy day account doesn't protect you from potential credit report errors. In some instances, a credit company may make a mistake, such as marking a current account delinquent.

Anytime you spot a questionable or unfair item on your credit document you may want to contact a credit repair company to help you investigate and dispute the mark.