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MAKE YOUR PAYMENT ON TIME
Even if you can only make
the minimum payment , it is
better to pay it on time
than to send 3 times the
payment late! Hint: If the
payment comes at a bad time
of the month – change the
due date! Example: the
payment is due on the 2nd of
the month, but your check
doesn’t come until the 3rd.
The due date for your credit
card payment can be moved to
say, the 10th or 15th of the
month. Saving not only $30 -
$40 a month in late fees,
but drastically increasing
your credit score.
DON’T GO OVER THE
LIMIT Stay within your
credit limit! If needed -
contact the company for an
increase in your limit. Many
times they can do this based
on your credit history with
them, without pulling a
credit report – ask them.
However, DO NOT let them
pull your credit report.
Contrary to what you are
told – too many inquiries
WILL LOWER YOUR CREDIT
SCORE! (Credit card
companies already pull your
report a minimum of
annually, usually
quarterly.)
DO NOT EXCEED 40%
OF YOUR CREDIT LIMIT on any
card - Preferably do not
exceed 30% of your limit. I
know it’s crazy, they give
you the limit then if you
use it they say “oops he
must be in trouble – so
raise his interest”. This
plays a big role in your
credit score – Credit Line
VS Available Credit.
PAY EXTRA WHENEVER
POSSIBLE – Even if it is
only $5 or $10 extra, or
only once every few months –
this shows good faith on
your part and you would be
shocked at the amount of
interest it will save.
EVERY CREDIT ACCOUNT
EFFECTS THE RATE OF INTEREST
YOU PAY – Even if only 1
out of 5 credit card
payments have been late,
late payments on your credit
report effect the amount of
interest you now pay on
everything you purchase,
i.e. home, car, boat, even
your insurance rates on your
homeowners and Auto! A low
credit score can increase
your annual insurance
premium on your car by
hundreds of dollars!!!!
ENOUGH IS ENOUGH –
too many credit cards will
lower your score. Eliminate
unnecessary cards: i.e.,
department store cards, gas
cards, etc. These typically
have very high interest
rates and any Visa, MC or
Discover can be used to make
the same purchase. (Always,
use the one with the lowest
purchase rate interest.)
CASH ADVANCES ARE A
NO-NO- These are the
highest rates, often as much
as 34.9%. |
