PAYING CREDIT CARD BILLS
Credit cards provide a convenient, cost-effective means for borrowing money. However, there are impacting consequences if you neglect to pay your credit card bill on time. Specifically, you will be hit with penalties and increased interest rates. In addition, your credit score will be adversely reflected as a result.
There is absolutely no reason for missing a payment/s. The simplest method for reducing the risk of being delinquent is to make your payment the same day you receive your bill. Featured below is advice on how you can ensure that you are never late on your credit card bill payments.
Don't delay! Remit your payments before the due date!
It is important that you are aware of when all of your bills are due. Usually, payment is due one month from the date you receive your statement. This is plenty of time to plan your finances and make your payment. A good idea would be to calculate what date is two weeks before the due date. Make a notation on your calendar, computer or phone as a reminder.
When your pre-determined due date arrives, remit your payment that day either via online banking or by sending a check in the mail . Two weeks is going to give you more than enough time to ensure timely mail deliver and processing by your credit card issuer. If you wait until a day or so before the due to mail your payment, you run the risk of being delinquent if the mail system is slow, or worse, your payment gets lost. Credit card companies don't offer any sort of empathy for customers facing these situations.
Making your payments early every month offers additional benefits. For example, suppose you are late or forget to make a payment one month. As mentioned, when this occurs, penalties and increased interest rates are usually imposed to your account by your issuer. However, your regularly timely payments can be your one time ‘get out of jail free’. However, expect to be hit with these penalties the next time you are delinquent.
Paying more than the required minimum monthly!
Making payments of more than the minimum exhibits smart credit card use as well as financial security. In addition, your debt will be eliminated faster. Minimum monthly payments are usually 10% of your total debt, or $25, whichever is greater. Try and pay as much as you can. Even if you pay only a few dollars more than the minimum, its a start. Check out this credit card calculator to figure out how long it will take you to eliminate your credit card debt and how much it will end up costing you, when making only the minimum payments.
Similarly to making early payments, you benefit from paying more than the minimum in the event you miss your scheduled payment. As a result of your positive account activity, your credit card issuer will probably not raise your interest rates or impose penalties if you are late one time.
Always keep tabs on your account balances and your limits!
It is crucial that you are always aware of what your available credit limits are. If you go over the limit, you are going to be slapped with some expensive fees. Your credit score will also be adversely affected as a result. If your available credit limit is $5,000, never spend more than $4,000. This will ensure that you stay within your constraints, avoiding having to pay unnecessary fees and from harming your credit. A good idea would be to order a copy of your credit report so that you can examine exactly how your creditors are reporting your account activity.
In conclusion. . . .
Using a credit card wisely will help you avoid any of the penalties and fees that result from improper use.
Jacob Joseph is a financial expert for http://www.starloanservices.com