Tuesday, June 9, 2009

Paying Credit Card Tips

Often than not, we use to pay only the minimum amount due stated on our credit card bills. And yes, for us it was very convenient, which happens to be all wrong. I suggest that we start to pay above the minimum payment of our bills.

Here are some good reasons why we must pay more than the minimum of our credit card.

1. Can Save Lots Of Dollars
This is often overlooked by the credit card holders. When we pay only the minimum, it means we will paying more of the finance charges soon. Payment above minimum can save hundreds, possibly even thousands, in finance charges by paying above minimum on our monthly credit card bills.

2. Pay It ASAP

Not only do you pay more in interest, you also end up paying over a longer period of time. Do the math of your existing balance over the interest rates per year. You will be surprised.

3. Will Improve Our Credit Score
If your credit card balance is high relative to your credit limit, it costs precious credit score points. Minimum payments only decrease your balance a little at a time. You'll typically see a credit score increase when you bring your balance down sooner with higher payments.

4. Clean Record For Mortgages.
This can help you in making out your dream home. This will assure of clean record and enough room for a housing loan.

5. Enough Balance For More Important Purchase
If you pay above the minimum amount due, you will be clearing more room for other important purchase and of course; for emergency reasons.

If you know more tips or disagree with above tips about credit card payments, feel free to leave it at the comment section.


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