It’s pretty easy to make payments by just swiping your credit card when on holidays. But before making such move, ensure your credit card is not in trouble. Review your report
Everyone with a credit score is entitled to a free report from all three major bureaus every year. This implies that you could request a free report from a different bureau every four months. Reviewing this report could help you detect and correct any error and delinquencies that could reduce your credit score.
Make use of it or lose it
Issuers may decide to deactivate an account when it is rarely used or reduce the credit limit. Most of these institutions are more concerned about their profit and an unused credit card doesn’t yield profits. Ensure you check the rules on your credit card and try as much as possible to meet their minimum requirements. A reduction in limit and account closure can harm your credit score.
Reduce your credit balance
Paying off purchases and outstanding balance not only help you save money but also provides security against unforeseen and undesirable account charges which will help increase your credit score. The higher your card limit is and the less the amount used, the better you are seen in eyes of the issuer.
Monitor your spending
This could be done by monitoring your checks, debits and credit card transactions and ATM card usage. Review your monthly report once you get it and ensure you tender complaints immediately you detect any error in the report.
Try not to exceed your limit on credit cards and lines of credit
The credit you have available signifies how much credit you have available on a line of credit or credit card. It is usually calculated as your credit limit minus your outstanding balance. Ensure your spending sis being kept below this amount. Going by the 20/10 rule, its best not to allow your credit card debt go beyond 20% of your total yearly income after tax. And make sure you don’t have more than 10% of your monthly take-home pay in credit card payment.
Have Funds for Emergency
Ensure you have about 15% of total credit funds available for emergency purpose or preferably, keep an emergency savings fund of three to six months' living expenses in a liquid, interest-earning account. With that if you lose your job or have a big unbudgeted expense to make, you will not bother about borrowing more than what you could pay easily.
Make Payment of what you owe
Always ensure you pay at least the minimum monthly payments every month in a timely manner. By making the required monthly payment or paying all the balance in full, you will be able to reduce your finance charges. Make sure you don’t ignore any payment.
Contact Us:
Goodcredit.com
Address: 124 St. Mary’s St. Raleigh, N.C. 27605