Handle Your Card Debts Well!

Your credit cards play an important role in building your credit score. Today, if you have a card you must use it because your issuer will, otherwise close it for non-usage. Closing will definitely hurt your score and hence you use them to maintain a healthy report.

Your credit card debt needs to be handled properly if you want to be hassle free. If you can use them wisely, you may be rewarded with a good score, a rate cut in interests as well as an increased limit. Using them in the wrong manner might result in a bad score, increased interest rates and lower limit of course.

Credit card don'ts - When using plastic money don't:

• Make everyday purchases like grocery, clothing and gas or use them as a replacement for cash. These are items you need to purchase with cash and if you use your plastic money for ordinary purchases like this, you may get in to this habit and hence incur huge debt without realizing on time.

• Make minimum payments only. If you make minimum payments only, your time to pay off the entire loan will increase and hence it will also increase your interest rate. Pay off as much as you can to get to get off the debt burden quickly.

• Make purchases for things you cannot afford to pay back. Although this may seem to be the easiest solution to that expensive camera you wanted to buy, but first analyze whether you can pay back the money within time.

• Cancel or close a card without first finding out how it will affect your report.

Credit card dos - When using plastic money, do:

• Think over before taking any decision when you have to make purchases using them. Make a distinction between things you want and things you need.

• Inform your lender if you will be late in paying your monthly dues in a particular month. Most of them are co operative if you confide in them.

• Keep your balances low. This will help maintain a good report. Again, lower balances are also easier to manage.

• Negotiate with your creditor for a lower rate of interest. The interest rate you are offered determines the amount you pay in order to hold a balance on your credit card. Make sure you get the best deal. Evaluate the rate of interest you pay regularly to confirm a good deal.

Jason Holmes is a reputed author and she has been writing articles on debt consolidation. He has also written for Debt Consolidation community. Some of the articles written by her include Credit card debt, Debt free, Debt negotiation, Bill consolidation, Ameriloan and Legacy Visa. Her write ups are very informative and have proved to be very helpful those in debt.

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