Click me
Transcribed

Reaching Credit Card Nirvana

VISA VISA Vie VISA VISA REACHING CREDIT CARD NIRVANA VISA (FROM DEBT HELL) VISA VISA VISA VISA While the theoretical maximum score is 850, it's almost impossible to achieve. For most lenders anything above 775 is just as good. You will qualify for just about any loan at the lowest rates. You have reached credit nirvana. It may seem like just a number, but your credit score has a real impact on the interest rates you receive on loans. A few points difference can save you tens of thousands of dollars on a mortgage. Paying bills isn't fun so try to automate the process. Sign up for automatic payments with as many bills as you can. Set up auto-pay through your bank if possible. Then just make sure your bank account is topped up. Keep your credit usage to 30% or less of what is available to you. This demonstrates you can handle debt, and will look good on your report. Negotiating a lower settlement for unpaid debt may seem like a win, but it's cataclysmic to your credit score, and will likely cost you more in higher interest rates in the future. Clear up old unpaid bills. It may seem silly to call and pay a 5 year old library fine, but it's a surefire way to raise your credit score. Think of it as a good deed, and make sure they report it as paid on your report. Check the report for errors. Inaccu- racies are more common than you think and do serious harm to your score. If you find one, call the credit reporting agency and have it fixed. Know your credit score. It's a great barometer of your financial health. You can get your report for free, but a monthly monitoring service might be more useful. Once you know the score, the game becomes how to increase it. GET A CARD WITH KITTENS ON IT 0% APR LOW minimum PAYMENTS Don't succumb to credit card come-ons. You really only need one credit card. If you need to separate, business and personal expenses, get two. Keep it simple and there's less chance of missing a payment or being hit with fees. Credit counseling or debt management services may be an option but do your home work and research the company and its competitors. Read the fine print and look for impartial reviews. Some companies will try to get you to take a loan out at a smaller interest rate to pay off your credit card debt. Don't do it!A loan requires collateral so what you are effec- tively doing is securing your unsecured debt, so if something goes wrong, not only is your credit ruined, but your car or home might be on the block as well. Using only cash for purchases will ensure you don't slip back into debt. But you don't have to keep wads of bills in your wallet. Many banks will issue a Visa or Mastercard that is tied directly to your checking account. Same plastic, just no APR's. When you get some cards paid off, close the accounts, but only if they are newer ones. By leaving your older accounts open you are making the average age of your credit history older, which improves your FICO score. Got some extra money from grandma? Toss it at your credit card debt. Just think of it as an investment, with a 29% annual return, if that is what your APR is. The more you pay down your debt, the more money it saves you. You will not find a better return anywhere in this economy. At the very least keep a written account of your budget and spending. Whether on your computer or paper, if you have no idea how much you spend and save, you will not know if you are making progress or not. This is crucial for success. If you can't live like a monk to cut expenses, don't worry. Try paying the minimums, but split it in half and pay it twice a month. This will reduce your average daily balance and finance charges. It may make sense to pay off the largest debt first, but if you tackle and conquer your smallest debt, the psychological win can be enough to propel you on to the bigger challenges. Pay the minimums on your larger debts, and throw everything you can at the smaller ones. If that doesn't work, call your credit card company and simply ask for a lower rate. Be polite but firm, tell them you have received better rates from other cards but would prefer to stay loyal. Be reasonable, a reduction from 16% to 12% might sound agreeable. If they don't go for it, you can always try again in a month or so. Transfer balances to a lower interest card. Your poor credit rating may make this impossible but it's worth a shot. Be careful when signing up for another card and make sure it works for you and not against you. Stop charging. Cut up your cards if you can ,or at the very least, tuck them in your sock drawer. It may seem obvious but it is the first and most necessary step. mint.com/blog wallstats.com VISA VISA VS.

Reaching Credit Card Nirvana

shared by aleks on May 23
746 views
0 share
0 comments
For too many, credit cards are considered a necessary evil. It’s far too easy to fall prey to the temptation to buy things you can’t afford. So if you’ve made your deal with the devil and are no...

Publisher


Designer

Wall Stats

Category

Economy
Did you work on this visual? Claim credit!

Get a Quote

Embed Code

For hosted site:

Click the code to copy

For wordpress.com:

Click the code to copy
Customize size