Credit Card Big List

Credit cards can be a great boon to your financial abilities,
as long as you use them right. You have likely heard from a
friend or family member who blames the credit card companies for
all their financial woes. The truth is, they are blaming the
credit card companies only because they don’t want to blame
the person really responsible for the problem, themselves.

While credit cards are great to use to spend a lot of money, it
is important to realize this is not free money. This is an
advance loan that you are being given, in good faith, by the
credit card companies. They are entering into an agreement with
you where they will let you use their money, often at low
interest rates, as long as you keep up your end of the deal by
paying them back on time, as you have agreed. This is where many
people hit the snag. One of the quickest ways to see your credit
card interest and debt go up and your credit score go down is to
start missing the payments that you are supposed to be sending.

Due Dates and Interest

When you start with a credit card company, you often will have a
low interest rate that the company has trusted you with. They do
this because they believe you are a good credit risk and that
you will pay them back as you have agreed to in the credit terms
that you signed in order to be able to use their card. If you
fail to hold up your end of the bargain (paying on time) the
rules will often change and they will increase your interest
rate, as you are no longer as good of a credit risk.

Due Dates and Your Credit Score

If you don't remember to pay your credit card bill on time not
only are you going to see an increase in your credit rating, but
also you could see a decrease in your credit score. Many people
don't realize that when they are late on a payment or two, the
credit card companies often report those tardy payments to the
credit reporting companies. Late payments are a ding on your
credit score and can see your overall rating drop.

A lot of people figure a few days one direction or another
shouldn't matter when it comes to them paying their credit card
bills. Do you think the same way about your boss paying you on
payday? Would you mind if the company waited a few days to pay
you? Of course you would. It's the same with the credit card
company. You made a promise, you need to keep it.

Admitting Your Wrongs May Help

If you are late with your credit card payments and there is a
good reason, that doesn't mean the credit card company will
forgive it, but it doesn't hurt to ask. Often the companies are
willing to be a bit accommodating if you are up front with them.
If you are late, or going to be, call and apologize. While it
may still see your interest go up they may be willing to do
something to help you, such as taking away the late fee.

Author: Stephen Sikes