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Stop Paying the Minimum.

To find out the reasons why finance experts discourage you from submitting just the minimum amount required by your credit card firm, let’s consider today the disadvantages of carrying balance from one month to the next.

The Top Reasons



To avoid making substantial payments on interest. Did you know that paying just the minimum amount required by your credit card company can actually cost you a great deal of cash, in the long run? That’s because your repayments will be used to settle first the interest charged on your account, before your actual credit card transactions. Hence, if you will pay just the minimum amount due; you could end up making substantial payments on interest, which will correspond to cash you could have used for more important personal or household expenses.

No wonder, most finance experts today will advise you to keep up with your monthly financial obligations, particularly your credit card bills. That way, you can avoid spending a huge percentage of your financial resources on pesky interest charges.

To avoid inflicting damage to your credit history. Although card issuers may encourage consumers, like you, to carry balance from one month to the next, such decision can backfire on you. That’s because your payment transactions will surely get reported to the three major credit bureaus. And submission of incomplete payments can hurt your credit score and affect your chances of qualifying for affordable credit programs, in the coming months.

So, apart from making timely payments to your card issuer, you should also resolve to pay your monthly bills in full. By doing so, you can succeed in safeguarding your credit profile, as well as your financial prospects.

Great Tips for Credit Cardholders

Now, what can you do to settle your credit card bills completely and prudently? Here are some suggestions:

Sign up for automatic payment. If you have an active savings or checking account with a bank nearby then, we encourage you to take advantage of automatic payment services offered by the firm. After all, with this special payment option, you can certainly avoid skipping or missing out on your dues. How does it work?

Well, you will simply authorize the personnel of the bank to withdraw funds from your savings or checking account. The cash will then be used for settling your financial obligations, including your utilities bills, loan repayments, as well as your credit card charges. With such service, for sure, you won’t have to worry about payment delinquency, ever again.

Set up personal reminders or alerts in your mobile gadgets, like your smart phone, your personal digital assistant of PDA, or your Tablet PC. After all, such simple reminders will help you remember when your bills are due. Moreover, they can provide you with ample time to prepare the funds you need to make complete and timely payments to your card issuer.

Use these simple suggestions and we guarantee that you can succeed, not just in making on-time and complete payments to the credit card firm, but also in maintaining an excellent credit history.

