Whether you built up that pile of credit card debt due to a job loss, an illness, a family emergency, or just plain overspending, you will need to come up with a plan to deal with that debt before it becomes out of control. Credit card debt can be very expensive, but you might not realize that outstanding credit card debt could be damaging your credit scores as well. Even if you make your monthly payments on time, your balances are likely lowering your scores.
Imagine the following scenario…you budget and work hard to pay off your credit card debt because you understand that doing so will save you money and will likely help to improve your credit scores. After months of dedication you finally reach your goal of zero credit card debt. However, when you check your credit reports the next day you are surprised to learn that your credit card account still shows an outstanding balance. Is this a mistake? Why is your new zero balance not showing up on your credit reports?
It’s called prioritization! Whether you received a big tax refund, an inheritance, or a bonus, if you have recently come into a lump sum of money you may be ready to start chipping away at your debt. Of course, if you are like most people then even an unexpected influx of cash probably will not be enough to completely wipe out all the debts you owe. The question therefore becomes, which debts should you tackle first?
If you are like most people, the truth is that you probably never planned for your debt to go unpaid and spin out of control. You signed a promissory note or otherwise agreed to a lender’s terms. Your intention was to make every payment on time and to satisfy your debt in full. And then…
When it comes to credit, sometimes knowing what not to do is just as important and knowing what you should be doing. There are certainly a lot of common credit mistakes which can take a major toll on your credit scores. You probably would not be surprised to read that things like late payments, charge-offs, repossessions and foreclosures can harm your scores. However, it might be a real eye-opener to learn that you could potentially cause serious damage to your credit scores simply by closing an unused credit card account.
Are you obsessed with trying to crack the code and earn great credit scores? Do you worry that you may have too many or too few credit card accounts holding you back from this goal? If so, I have some information which will hopefully help to better guide you on your credit improvement quest. The “secret formula” for earning killer credit scores has practically nothing to do with the number of credit card accounts you’ve got. In fact, the raw number of credit cards appearing on your credit reports hardly matters at all.
Are you cautious about allowing anyone to pull your credit reports because you do not want your credit scores to be damaged by the so-called “hard” inquiries? If so, give yourself a pat on the back. The fact that you are concerned about avoiding any potential damage to your credit shows that you are a conscientious consumer who is trying to make the right choices where your credit scores are concerned.
t’s officially the holiday shopping season and we’ve supposedly lost all self control over our finances until the end of 2017, when we’ll find magically find it. The holidays are supposed to represent a time of family, joy, and giving – or at least that is what the movies tell us. However, for a lot of Americans the holidays have also come to represent a time for overspending, financial stress, and credit score damage.
If you are like most Americans you probably have different types of plastic camping out in your wallet. Chances are that at least one of those cards is a debit card and at least one of them, and possibly many more, are credit cards.
Sooner or later the condition of your credit reports and scores is going to impact your life, it’s unavoidable. Want to lease an apartment? Your credit matters. Want to take out a loan to purchase a vehicle? Your credit matters. Want to take advantage of a better cell phone plan? You guessed it, your credit matters.