CREDIT CARD PAYMENTS
Credit cards offer great
advantage and benefits. However, it is very easy to overlook and forget to make
payments for your credit cards. Not only is a
late credit card payment going to cost you money in
penalties, your interest rate is likely going to be
raised by the card issuer. In addition, your credit will
negatively reflect this, for a long time (seven years).
Learn more about
default credit card rates.
There is no excuse for missing payments. The easiest way
to eliminate the chances for being delinquent is to pay
your bill the instant you get it. Below are some tips
and advice on what you can do to ensure promptness!
Don't wait! Make your payments early!
You should always be aware of what the due date for
your bills are. It will typically be one month from the
time you receive your statement. This is more than
sufficient time to make plans for payment. Determine
what date is going to be two weeks before the payment
due date. Mark this date on your calendar and/or create
a reminder on your computer and/or phone.
Once that day arrives, make the payment and mail the bill
out. By mailing it out two weeks early, you are giving
yourself enough time to make sure that it that the mail
system does its job and gets your payment to your credit
card company. Suppose you wait until two days before the
due date to mail your bill, and the it gets lost in the
mail. Do you think the credit card company is going to
offer you any grief? No, they are not.
Regular early bill payment is also beneficial for other
reasons. Suppose you
make a late payment, or miss one altogether one
month. Normally when this occurs, your credit card
issuer is going to impose penalties, including increased
interest rates. However, they are going to be less
likely inclined to raise your interest rates if you have
been making regular early payments. In addition, either
one will result in a
negative impact on your credit.
Pay More Than the Minimum!
Paying more than the minimum exhibits that not only
are financial secure, but that you practice smart credit
card use. In addition, you will
eliminate credit card debt quicker. The typical
minimum payment required is 10% or $25, whichever is
higher. Even if you pay just an extra 5-10% than the
minimum, you are going to be helping your self reduce
debt faster. Use this
credit card calculator to see how long it will take
you pay off credit card debt when paying only the
Paying more than the required minimum is also going to
help you in the event that you are late or miss a
payment. Your credit card company is going to view your
payment activity positively and will less likely raise
your interest rates.
Always Keep Track of Your Spending and the Payments
It is very important that you always know how much
credit is available! Never spend more than you can
afford. The fees associated with
going over the limit
are very high. This will also be displayed negatively on
your credit report. By staying within your available
credit limits, you protect yourself from unneeded fees
and costs and from damaging your credit. We suggest that
order a copy of your credit report so that you can
see exactly how your payment activity is being reported.
It is important that you
use credit cards wisely. The tips above will help you remain
in good standing with your credit card issuer, keep your
balances down and
improve your credit score.