-
-
Get A free
Consultation Now!
Tag Archives: credit card balance
Tips to Improve Your Credit Score this Year!
It’s the beginning of a brand new year and we wonder,, have thought about your credit score yet? A New Year means new opportunities for you financially! For those of you seeking a more financially secured life, take these tips, read them, and begin to implement them into your daily routine.
- Keep your credit card balances low. The most effective way to improve your credit score is to pay down your revolving (credit card) debt. Your credit utilization ratio accounts for 30 percent of your credit score. While you may hear that paying debt down to 30% of the available balance is a good mark, an ideal credit utilization ratio is actually around 10% or lower.
- Pay your bills on time.
- Don’t allow outdated or inaccurate information to remain on your credit report. If you see something incorrect listed on your report, you should take actions to have it removed.
- Sending your payments in early may also help your credit score. Different creditors have different report dates when they send the information to the credit bureaus.
- Check your credit report annually. It’s important to make sure that there are no errors on your credit file. A significant number of credit reports do have these errors, which can lower your score. These days, you also need to make sure that your identity hasn’t been stolen or compromised, which affects up to 1 in 8 Americans every year.
- Don’t be tempted by new credit card offers or take on new debt. You can have these solicitations stopped being sent to you by “opting out” of these offers.
- Paying off a collection will NOT increase your score. It’s not the balance, but the fact that the account went into collection status is what is essentially hurting your score. But your score will increase if the collection agency is willing to delete the account off your credit report.
- Don’t go without credit. You only have a credit score if you have an active credit history. Some credit scoring systems cannot calculate a score if no balance is reported to the credit history within the last six months.
- If you want a high score, do not pay all your debt down to zero. FICO calculates a significant portion of your score by your credit utilization ratio, so it’s important to simply keep them all under 30% of their limit
- Request an increase to your credit line. Then make sure not to use the excess credit because this will improve your overall credit % usage
- Add missing accounts to your credit report. A perfect way to build your credit is to add positive accts that are not currently being reported. Unfortunately Cell phone companies, Internet providers, utility companies, and medical billers are not required to and often don’t bother reporting credit. But if you ask them to do so, they sometimes will post a new but well-seasoned, positive new trade line to your credit report.
- If you’ve missed payments and have an account in collections, they will often agree to erase any negative credit reporting for that account as long as you pay it off in full.
- Call Nationwide Credit Clearing if you have any questions in regards to your credit or want to see how you can improve it. We’re the nation’s leader in credit repair, with our clients enjoying a lifetime of financial freedom
Nationwide credit Clearing has been the leader in credit repair for over 20 years. We can help anyone in the United States increase their credit score. Give us a call today to find out how it all works!
“Home of the Free Credit Report & Consultation”
2336 N. Damen
First Floor
Chicago, IL 60647
Phone: 773-862-7700
Toll Free: 877-334-3296
Fax: 773-862-7703
E-Mail: support@mynationwidecredit.com
follow us on…
Paying only the Minimum Credit Card Balance
For many of us, opening a credit card is our first chance to start building a credit history. We believe that obtaining a credit card and using it responsibly will give us a head start on a long life of positive financial habits. Millions of credit card users are fulfilling their goal of swiping their card and paying it off each month. However, there are others who are struggling to get the money together to pay of the minimum balance. We all have a tight month every once in awhile, and paying the total balance seem so optional, compared to other bills. But what really happens when you pay the minimum balance?
How The Minimum Balance Works: Interest
As you are probably aware, you can swipe your credit card as you please, as long as you do not exceed the credit card limit. As with all debt instruments, the credit issuer gives you the option to pay the bill in its entirety or to pay a small amount to deal with at a later time. Interest will be added to the remainder, which in return will increase the price of your purchases. What is interest exactly? It is what the credit card issuer chargers their cardholders to extend the loan past the finance-free grace period. The lower your interest rate or annual percentage rate (APR), the less debt you will roll over month to month.
How Does The Minimum Balance Affect Me
Aside from the obvious, of having to pay more for your purchases due to the interest rate, there are other negative consequences to paying only the minimum balance.
- Your Credit Score Will Fall: Making a minimum payment on your credit card is a quick solution for when you are short on cash. But the debt that you rack up over the course of a few months of minimum payments, will really mess up your credit score. 30% of your credit score is determined by how much debt you carry. Accruing charges on your credit card and failing to pay them off is like putting a dent in your credit score every month. Over time, this will add up to a lot of damage.
- Your Monthly Bills Will Pile Up: As a result of the damage you will be doing to you credit score with minimum payments, other monthly bills will expensive to. These include obligations such as insurance, rent, and loans. Lenders and insurance companies tend to charge people with poor credit more.
- Credit Card Costs Will Skyrocket: One of the most obvious impacts of minimum payments, is the unpaid balance building up. The average interest rate on a credit card is 15%, it will become very expensive to fail to pay off your balance in full. Additionally a lot of credit card companies charge a fee for exceeding your credit limit. When you are only paying off the minimum balance, this is quite easy to do.
What Should You Do?
Keep track of what you are spending. Make sure that you do not swipe for more than you can comfortably pay off at the end of each month. Credit cards are a great tool for building good credit. However, don’t give in to the temptation to rely on them to cover the balance of a purchase you can not afford. Just because you can spend the amount of your credit limit, does not mean that you should. Remember that your credit card activity is being watched. The credit card company will send the date of your opening to consumer credit bureaus, and every month report your activity. If you charge regularly, keep the balance at $0 and make all payments by the due date.
If you have high credit card balances, deragatory remarks, or even late payments and you just can’t seem to get yourself together enough to increase your overall credit score, there is help.
Nationwide Credit Clearing
2336 N. Damen
First Floor
Chicago, IL 60647
Phone: 773-862-7700
Toll Free: 877-334-3296
Fax: 773-862-7703
E-Mail: support@mynationwidecredit.com
http://mynationwidecredit.com
