Credit Management - How To Properly Manage Credit Cards
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Credit management. Isn’t that an oxymoron? It doesn’t have to be.
Everyone knows that a credit card is a necessity in our modern times. But once you have that credit card, how you manage your debt can affect everything from that credit card jumping in interest rate to how much your future interest rates on everything (cars, homes, other credit cards) will be. It’s important to manage your debt and make sure that the credit you have works FOR you instead of AGAINST you.
Credit Management Tip #1 - Use Your Smarts And Be Cautious
If your credit is bad or even semi-bad and the only bad credit cards offered to you are with high interest rates don’t go crazy in charging. If used properly a bad credit card can bring your credit score up, used wrong it can damage your score.
Pay your bills on time (that doesn’t mean mailing it on the due date). And if possible pay the entire bill off each month or at least a big portion of it.
Credit Management Tip #2 - Understand How Interest Is Calculated On Your Card
A lot of people don’t care about this but they should. This is the reason banks give credit cards out; it’s not for your convenience, that’s the way they make money! So if your balance gets high enough where the your interest is $80 per month on the balance owed and the bank sets a minimum payment of $20 and that’s all you pay the next month you pay interest on the $80 interest from last months bill – see where this is going? It is a never-ending cycle and the banks love it!
Credit Management Tip #3 - Try To Get A Card With A Better Interest Rate
If you carry a large balance each month (we hope you don’t) consider a balance transfer to a lower interest card for a set period of time. Then during that time double or triple your payments to pay the balance down or better off completely.
Credit Management Tip #4 - Be Pro-Active To Get Your Debt Paid Off
If you have a large balance and have no immediate opportunity to pay it completely off - be pro-active. Consider a credit counseling agency to help pay them off, and then get smart and don’t use them except for emergencies.
Credit Management Tip #5 – What Type Of Card Is Best For You?
If you have a hard time managing credit then use a debit card. That is tied into your bank account and if you don’t have the cash available you can’t make the purchase. If you are undisciplined in credit this is for you.
Secured credit cards are secured by a deposit but will have a credit limit.
Unsecured cards give you a credit limit which you should always try to stay under 30% of. This will keep your credit score high and make you desirable to other lenders for things like car loans and home mortgages.
Whatever type of credit card you choose be sensible how you use it. As long as you do this there is nothing to worry about. It’s your choice, be in debt and be a slave to a bank or credit card company or use credit cards sensibly and be free.
Click here to see our full list of bad credit card companies.
Credit Management Tip #1 - Use Your Smarts And Be Cautious
If your credit is bad or even semi-bad and the only bad credit cards offered to you are with high interest rates don’t go crazy in charging. If used properly a bad credit card can bring your credit score up, used wrong it can damage your score.
Pay your bills on time (that doesn’t mean mailing it on the due date). And if possible pay the entire bill off each month or at least a big portion of it.
Credit Management Tip #2 - Understand How Interest Is Calculated On Your Card
A lot of people don’t care about this but they should. This is the reason banks give credit cards out; it’s not for your convenience, that’s the way they make money! So if your balance gets high enough where the your interest is $80 per month on the balance owed and the bank sets a minimum payment of $20 and that’s all you pay the next month you pay interest on the $80 interest from last months bill – see where this is going? It is a never-ending cycle and the banks love it!
Credit Management Tip #3 - Try To Get A Card With A Better Interest Rate
If you carry a large balance each month (we hope you don’t) consider a balance transfer to a lower interest card for a set period of time. Then during that time double or triple your payments to pay the balance down or better off completely.
Credit Management Tip #4 - Be Pro-Active To Get Your Debt Paid Off
If you have a large balance and have no immediate opportunity to pay it completely off - be pro-active. Consider a credit counseling agency to help pay them off, and then get smart and don’t use them except for emergencies.
Credit Management Tip #5 – What Type Of Card Is Best For You?
If you have a hard time managing credit then use a debit card. That is tied into your bank account and if you don’t have the cash available you can’t make the purchase. If you are undisciplined in credit this is for you.
Secured credit cards are secured by a deposit but will have a credit limit.
Unsecured cards give you a credit limit which you should always try to stay under 30% of. This will keep your credit score high and make you desirable to other lenders for things like car loans and home mortgages.
Whatever type of credit card you choose be sensible how you use it. As long as you do this there is nothing to worry about. It’s your choice, be in debt and be a slave to a bank or credit card company or use credit cards sensibly and be free.
Click here to see our full list of bad credit card companies.
