8 Best credit card relief recommendations one can follow.

Jun

25

2018

 

 

Everyone wants a high credit score but may be unaware of some of the errors that could be negatively impacting their credit score.

  1.   Check Your Credit Report

To begin with, know what your credit reports say and how your score on all three.  Get your free reports online. With AnnualCreditReport.com,you can start to make disputes on you credit reports. There is no excuse not to know and be on top of your credit reports and scores.  There are numerous free services that allow this which you can sign up for. If there are errors on your credit reports you can learn how to handle them. The best cedit card relief programs can be found free of charge by contacting the credit reporting agencies. By law, the Federal government gives you the right to an accurate credit report. Credit bureaus allow you to dispute anything that is not accurate and verifiable thanks to the Fair Credit Reporting Act. You can have them removed from your credit report.

  1.   Don’t carry a balance

Minimum payments on credit cards should never be made. But some people charge more than what they can afford not thinking of the consequences.  Be aware that if you charge $2,000 on a credit card with 20% interest rate and only pay the minimum payment due each month you’ll end up paying twice as much over a 10 year period if you only make the minimum payment.  Figure out how soon you can pay off the balance you have on your credit card so you can be debt free and not only will you have peace of mind, your credit score and will go up and your credit card issuer will more likely offer you rewards such as lower interest rates or a larger credit limit.  Keep your balance low, if possible at only ¼ of the overall limit. If your balance is higher, make higher payments until it’s at a point you can easily pay off. Pay it off all together if you can and avoid having to pay interest.

It is important not to charge your credit card beyond 30% of the credit limit. Penalties and fees incur when you are over the limit.  However, the closer you get to your credit limit the lower your credit score gets. Keeping a credit card balance of 25 to 30 % of your credit limit is healthy and manageable.

  1.     Take advantage of rewards

Don’t ignore the rewards your credit card issuer offers; they are there for a reason, to help you. You can get paid for everyday purchases you make such as gas and groceries,  using your credit card. The rewards credit cards give you as incentives typically consist of cash, points or miles, and are based on what you spend. Find out more about your credit card rewards system from your credit card issuer. Get the most out of using your credit card for your benefit.  Reward credit cards offer valuable points and cash back on your purchases.

  1.     Don’t apply for too much credit

Sometimes you apply for and receive credit cards for all the wrong reasons.  Too many inquiries on your credit over a short period of time is cause for alarm and your credit score will respond to it by lowering the score. Hard inquiries affect your score, so if you don’t need to, don’t apply to have more credit cards than you can manage.  Lowering your interest rate on a card you already have or extending the limits on it are things you can work out with your credit card issuer before you fill out new credit card applications and new inquiries are made on your credit that may negatively impact your credit.

  1.   Use your credit card

Not using your credit card is not a good sign and may even hurt your credit score. A revolving credit card account showing that you make payments on time and that your limit to balance ratio is low affects your credit positively.  Try to use your credit card for minor purchases at least once a month and pay them off before you are charged interest. Unfortunately, you must borrow and pay within the terms to be considered responsible.

  1.   Don’t loan your credit card

When you loan your credit card you lose control over the purchases made with it. But you are still responsible for making the payments on it. Stop and think before you hand out your credit card to your son, daughter, or spouse. Find a way for them to have their own credit card and teach them how to manage their credit.  They will thank you for it in the end.

  1.   Don’t ignore you billing statement

Ignoring you billing statement is a sign of poor finance management skills. Be proactive, read your statement carefully and make a call to your issuer with any questions you may have concerning the balance, how much of your payment will go towards interest, you reward points, or any other concern you may have including disputes.  Waiting until the end of the cycle may be too late. Credit card issuers will work with you if you have a problem and need to skip a payment, or pay only interest. Discussing your situation with the credit card issuer shows your good intentions and responsible financial character.

  1.   Don’t charge your credit cards off -ever

Charge-offs hurt your credit report for at least 7 years and will lower the chances of getting credit cards and loans on low interest rates or even at all.  Bringing delinquent accounts current before the 6 month late payment notice is of the utmost importance to your credit score and credit history report.

The best way to know whether credit card debt consolidation works for you or not is to consult a reputable non-profit credit counselor about your options.  Knowing your options and having someone to turn to with questions besides your credit card issuers will help you find credit card debt relief options that are best for your case.  

 

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