Business & Finance Credit

Credit and Your Credit Card

Poorly managed credit cards are one one of the biggest reasons why people end up in overwhelming debt.
For people who try to live off their card, they will usually end up in such bad debt that it affects other financial areas of their lives such as paying for their monthly living expenses and paying their mortgage or rent.
Credit cards must be used wisely because once you are in over your head in debt, it can follow your for years.
For instance, card debt can ruin your credit rating.
When you maintain good credit on your card, such institutions as mortgage lenders look favorably upon you when assessing a loan application as it shows you are financially responsible.
Below are a number of tips to maintaining good credit on your credit card: Pay On-Time: Paying your card late can cause your interest charges to rise and also you will accumulate late fees and other penalty fees.
If you are quite late with your payment, the credit card company may even send a report to the credit bureau which will negatively impact your credit score.
Missing a payment has both immediate and long-term consequences To maintain a good credit history it is essential that pay your card bill on-time each month.
Remember, a significant part of your credit score is based on how well you pay your bills on-time.
Pay More the Minimum Payment: If you only pay the minimum amount monthly, you are just extending your debt and you will be paying more in interest charges.
You will find that over time you will be paying double or triple the amount that you actually used.
It is important to pay more than the minimum amount so you can pay your card off faster and avoid extra charges.
Leave Card at Home: People often use credit cards for the convenience and for the rewards program.
If you carry your card with you all of the time, you will be more likely to use it and at the end of the month, you will end up with a huge bill.
Regarding the rewards program, you have to consider whether the interest charges are worth getting the rewards points.
A free trip will not be that much fun if you have accumulated a huge amount of debt to get the trip.
Two Cards are Enough: If you have multiple cards and you are maxing out one and then moving on to another, it can really add up and in time you will have so much debt, you will be unable to pay it pack.
As well, multiple cards with multiple interest charges can really put you in a financial mess.
Maxing out your card can even hurt your credit score.
It shows that you are unable to manage your credit which will make it more difficult to get a loan for a vehicle or a home mortgage.
Also, transferring one amount on one card to another card is not a good idea because in most cases people will normally end up maxing out all of the cards.
As well, after a few transfers, your credit score will be affected.
There are times in our life when we do need to use our card.
Also credit cards can have a positive impact on our credit report when used responsibly.
If you have a credit balance on your card for a few months, you should not worry as long as you can pay it off in a timely manner and your payments are made on-time.
When used responsibly, cards can be an asset.
SHARE
RELATED POSTS on "Business & Finance"
What Do You Need to Know About Credit Cards and Risk-Based Pricing?
What Do You Need to Know About Credit Cards and Risk-Based Pricing?
Firestone Credit Card Overview
Firestone Credit Card Overview
Statute of Limitations for Collecting a Credit Card Debt in the State of Ohio
Statute of Limitations for Collecting a Credit Card Debt in the State of Ohio
Where to Purchase Prepaid Credit Cards - Online and In-store Outlets
Where to Purchase Prepaid Credit Cards - Online and In-store Outlets
Why & How Do I Raise My Credit Score?
Why & How Do I Raise My Credit Score?
How to Reopen an Account that the Credit Card Company Closed
How to Reopen an Account that the Credit Card Company Closed
Benefit Of Clean Credit Report
Benefit Of Clean Credit Report
Is a Deceased Person's Estate Responsible for Back Taxes?
Is a Deceased Person's Estate Responsible for Back Taxes?
How to Save Money on Your Credit Cards
How to Save Money on Your Credit Cards
Credit Card Security Compliance
Credit Card Security Compliance
Personal Credit Report - Credit Reporting Data From Many Sources
Personal Credit Report - Credit Reporting Data From Many Sources
How Credit Counseling Helps You in Fixing Debts
How Credit Counseling Helps You in Fixing Debts
Trading Futures Using Price Action
Trading Futures Using Price Action
Using Credit Cards Efficiently
Using Credit Cards Efficiently
What Is a Nine-Month Interest-Free Credit Card Offer?
What Is a Nine-Month Interest-Free Credit Card Offer?
Raising Your Credit Score For Free
Raising Your Credit Score For Free
Been Bankrupt? How It Can Hurt Your Credit Score
Been Bankrupt? How It Can Hurt Your Credit Score
Debt Settlement Tips - How to Get Creditors to Accept Favorable Debt Settlement Deals
Debt Settlement Tips - How to Get Creditors to Accept Favorable Debt Settlement Deals
Some Thoughts on Credit Card Payment Services
Some Thoughts on Credit Card Payment Services
Can You Really Improve Your Credit Score in 24 Hours?
Can You Really Improve Your Credit Score in 24 Hours?

Leave Your Reply

*