Be Smart About Credit Card Debt
Have you ever noticed how you can get at least 10%, if not more, off of your purchase, just by opening up a credit card? Have you ever opened a credit card just to get a free gift like a tote bag or water bottle? I have...
We all have! The bad part is when those cards come back to haunt you.
First of all, having too many credit cards has a negative impact on your credit rating.
Second of all, the more of those little credit cards you have, the more likely you are to use them at their respective stores.
It's a recipe for disaster! If you feel compelled to get that discount, open the card, pay it off immediately, and cancel the card.
But, try not to do it too often.
Again, you don't want to hurt your credit score.
When you are looking to open a new credit card or looking to consolidate credit card debts on to a lower interest card, watch out for introductory rates.
Make sure you plan ahead and know how much you need to pay each month to prevent yourself from having a balance after the introductory period.
On a similar note, pay close attention to the "no-payment, no interest" deals some credit cards offer.
If you really don't make any payments, you will get stuck with all of the interest at the end.
Look closely at your statement, you'll see the interest accumulating, just not being charged...
yet.
One way that credit cards get you hooked is by increasing your credit limit.
Each time you pay the card off or make a sizeable payment, they may increase your credit line.
They'll send you a congratulations letter with the good news, but this isn't always good news.
Do you really need the limit increased? Do you really need extra to spend? Decide what limit you want your card to be at.
If that limit is $5,000, then keep it there.
If they try to increase it to $7,500, call them.
Ask them to reduce it back down.
They may be a little confused, but stick to it.
Take charge of your own credit.
Don't fall into the credit card traps the credit companies have set for you.
Be responsible and be reasonable with your credit cards.
Understand the terms of each one you have, and it will make managing payments and expenses much easier.
We all have! The bad part is when those cards come back to haunt you.
First of all, having too many credit cards has a negative impact on your credit rating.
Second of all, the more of those little credit cards you have, the more likely you are to use them at their respective stores.
It's a recipe for disaster! If you feel compelled to get that discount, open the card, pay it off immediately, and cancel the card.
But, try not to do it too often.
Again, you don't want to hurt your credit score.
When you are looking to open a new credit card or looking to consolidate credit card debts on to a lower interest card, watch out for introductory rates.
Make sure you plan ahead and know how much you need to pay each month to prevent yourself from having a balance after the introductory period.
On a similar note, pay close attention to the "no-payment, no interest" deals some credit cards offer.
If you really don't make any payments, you will get stuck with all of the interest at the end.
Look closely at your statement, you'll see the interest accumulating, just not being charged...
yet.
One way that credit cards get you hooked is by increasing your credit limit.
Each time you pay the card off or make a sizeable payment, they may increase your credit line.
They'll send you a congratulations letter with the good news, but this isn't always good news.
Do you really need the limit increased? Do you really need extra to spend? Decide what limit you want your card to be at.
If that limit is $5,000, then keep it there.
If they try to increase it to $7,500, call them.
Ask them to reduce it back down.
They may be a little confused, but stick to it.
Take charge of your own credit.
Don't fall into the credit card traps the credit companies have set for you.
Be responsible and be reasonable with your credit cards.
Understand the terms of each one you have, and it will make managing payments and expenses much easier.
Source...