Stop accruing debt
CLICK HERE if you missed the last part of this “Repair Your Credit” E-book article. Let’s continue to charge ahead and see if we can’t hit the bulls eye when it comes to getting your debt under control. Because cash advance in Mississippi loans and mortgage loan modification may be a temporary balm, but habits are what need adjusting in Gilead…
More on the credit card war
Cut those credit cards if you can’t stop yourself from swiping them! The first thing you must do to get those monster interest rates under control is stop increasing your balance by spending. Just say “NO” to instant gratification when it tries to slide plastic from eel skin. Many people have gone so far as to cut the cards up, but online purchases can be made as long as you have the card number, expiration date and CV2 code. Thus, willpower is in order here. Get away from using credit cards, but DON’T close the accounts. Why? Because it helps your credit rating.
If your credit report does not reflect any defaults at the moment, keep accounts open and work at paying them off (but not using them). That will have a great positive impact upon your FICO score. Try to keep only three to five credit card accounts open. If you have more, try to hold onto the ones with the best interest rates, but also consider this. Generally, the more unused credit you have available in relation to credit used, the better. Large limit cards with low interest rates are great to hold on to.
Balance transfers
Credit cards are a cutthroat business. If your have good credit, you can take advantage by negotiating the best offer possible. And a key element on your side during negotiations is the potential for you to transfer your balance from one card to another with a lower balance or more favorable terms and perks. Creditors are aware of this, so they will fight for a customer with good credit. Put it on the table and see what you can get.
As I’ve mentioned before, many cards will allow multiple balances to be transferred. So long as the credit available to credit used ration remains in your favor (try to use 30 percent or less of a card’s available credit and see your FICO score rise) and the card with the lowest APR is receiving your transfers, you’re in great shape. Look for a special transfer rate of zero percent for 12 to 18 months (or better). This means that all you’ll be paying on that is principal during that period, which is ideal.
More benefits of transfers?
Yes indeed! Discover Card has offered promotions in the past where you can continue the zero percent APR transfer rate if you continue to make at least three regular purchases per month. Sure, the purchases won’t be subject to the magic zero APR, but it will keep that rate locked in for your balance transfers. Since the promotion didn’t require a minimum amount on the purchases, you could have kept them small. Check with Discover or your credit card company of choice, as time and the recession have surely changed the offers available.
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