Credit is
based upon
past,
present, and
future
character.
Your
personal
financial
conduct is
the critical
tool used in
judging your
credit
worthiness,
for it is
the
measurement
used to
determine if
you can be
trusted with
someone
else’s
money. Being
a
responsible
credit card
holder can
save you
thousands of
dollars over
the years
and provide
opportunities
that may not
otherwise be
available to
you.
Nearly every
purchase or
consumer
action taken
today is
monitored
and recorded
by someone.
Whether you
want to buy
a car,
house, cell
phone, boat,
clothes,
insurance,
or a new
television,
having good
credit will
greatly
increase
your ability
to purchase.
A
responsible
credit card
holder never
steps up to
the checkout
counter in
fear that
their credit
card may be
declined.
There are
several ways
to become a
responsible
credit card
holder.
Let’s look
at the
simple ways.
Pay your
bills on
time: By
paying your
bills on
time you
establish
that you are
a good
credit risk.
It can also
save you
hundreds of
dollars in
late fees.
Some
credit
card
companies
charge as
much as $29
each time
your payment
is late. If
you your
account ever
goes into
default the
issuer may
raise your
APR because
they now
believe you
are a
greater
credit risk.
Don’t pay
the minimum
amount due:
By paying
only the
minimum
amount due
it may take
years to pay
of your
debt. It can
also cost
you
thousands of
dollars in
interest
that you
could have
had working
for you. A
$2,500
balance may
end up
costing you
nearly
$10,000.
Pay a fixed
amount each
month: If
you are
making on
time
payments
your minimum
payment
amount
should
decrease
slightly
each month.
If you can
afford it,
pay a fixed
amount each
month that
is higher
than your
minimum
amount due.
For example
if you
minimum
amount due
is $50 than
pay $60 or
more each
month, even
when your
minimum
payment
amount
begins to go
down. Be
sure to
choose a
fixed amount
you can pay
each month
so that your
debt will
decrease
much faster.
Never skip
payments:
Always
contact your
credit card
issuer if
you are
unable to
make a
payment. You
may be able
to make some
type of
payment
arrangement
that works
for you
both.
Sometimes
credit card
issues will
give you the
option to
skip a month
if you have
a good
payment
history.
Remember,
whether you
pay or not
your finance
charges will
still apply
for that
month. It is
always best
to continue
paying your
fixed
amount.
Use cash
advances
sparingly:
Only use
cash
advances in
true
emergency
situations.
Cash
advances can
run up your
overall debt
extremely
fast. Some
credit card
issues can
charge from
2 to 4
percent cash
advance
fees. For
example a
cash advance
of 5,000
with a 4
percent cash
advance
transaction
fee would
cost you
$200. Credit
card issuers
also charge
higher
interest
rates for
cash
advances. It
is no
coincidence
that there
is a higher
rate of
default
among cash
advance
users.
As a
responsible
credit card
holder your
overall
purchase
experience
will be much
more
pleasant
than that of
a person who
is less
responsible.
Please keep
in mind that
a truly
responsible
credit card
holder is
responsible
to both the
credit card
issuer and
oneself.
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