Sunday, August 17, 2008

Way to control Credit Card Debt

It is probably not news to warn you that you need to keep your credit as clean as possible, since good credit report, widely used in those days. A good indicator of credit can help you get the most favorable lending and interest rates on anything from the department store credit cards to new car loans and mortgages. When you are applying for a new job something good indicator of credit can be a decisive factor as to whether or not they offer you a job. And last, your credit score is currently being used by car insurance companies to determine your car insurance premiums, at the thought was that someone with good credit budget is more responsible and therefore less likely to be claims.

A good credit record and good credit history is to establish and maintain, but not a lot of work to become a burden for you if you can develop and maintain good habits of using credit.

The most obvious credit council is to pay your balance in full every month. Even with very good interest rate, does not make sense to pay interest on it, if you can afford to pay it off and keep that interest money in your pocket. Some people think that he wanted only $ 5 for my balance. But do math - that is 5 times $ 10 credit cards, times 12 months is $ 600 per year!

Not dazzled by the incredible pace of that new credit card offering, as the likelihood that very low interest rate is only a teaser, that rate will expire in a few months. If you can use the cards and low interest rates for the interim period of time, you can save money, but be aware that teaser, when the interest rate expires and real astronomical interest rates kicks in, at which point it is time to make sure that the account has a zero balance or the closure of accounts.

Did you know that credit cards actually have two separate interest rates? They have one, which is assessed on your outstanding balance, and they have one, which applies if you use a credit card for cash advance. Never use your credit card for cash advance, because those interest rates are usually really obscene, usually 25% or more. And when you make payments on your credit card, these payments are contrary balance before they start paying back cash advance, so that the last cash advance that has paid off, allowing credit card companies make the most amount of interest from you.

If you carry a balance forward from month to month, instead of redemption card in full each month, trying to maintain balances below 30% of your credit. This, combined with timely payment will lead to a good credit report that the card, but if the outstanding balance of more than 30% of your credit, you start getting credit royalties.

Never pay only the minimum payment. Pay more than the minimum, because if you only pay the minimum payment as a result, it will be a maximum amount of interest that credit card company will gather with you.

Better that, above all, what you can do is make sure that you make all your payments on time. If you have them in the mail, allow time for mail to arrive and for your payment will be posted to your account. If for example, must pay to 10, with your payment to arrive on May 10 will not help, because it must be processed and it may take a day or two to pay to get posted to your account. It also allows credit card companies charge a late fee collection.

Responsible use of credit will reward you with good credit score, which will be very useful when you get the best prices possible on your next big ticket purchase as mortgage or new car. It is much easier to get into the habit of using credit wisely, before you get yourself in a situation that could have been avoided, and will haunt you for many years.

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Eliminate Consumer Credit card debt © Layout By Hugo Meira.