Tips For Managing Credit Wheat Ridge CO

Tip #1: Live within your means.

This may sound obvious, but it's extremely important, because living within your means will keep you from having to resort to credit.

Tip # 2: Pay your bills on time.

Every time you pay a bill on time, you build your credit history and put yourself in a better position to obtain credit at lower rates in the future. Pay late and not only will you be faced with fees, but you'll also be hurting your credit standing.

Tip #3: Pay more than the minimum.

Say you have a $2,000 balance, and your minimum monthly payment is about $40. At an 18% interest rate, you'll end up paying nearly $5,000 and it will take more than 30 years! The minimum payment covers mainly just the interest, so the outstanding balance still remains, against which you will be charged interest in the next payment.

Tip #4: Avoid credit card add-on programs.

Many credit card companies offer various services and products to their card holders, like card registration services, insurance, and card loss/theft protection. Most cost money and are unnecessary for the typical consumer.

Tip #5: Don't chase lower rates by transferring balances.

This is a tricky process that involves fees, penalties, and other "catches" and usually ends up costing more than it saves. Balance transfer offers almost always have a low teaser rate that isn't fixed, which usually jumps much higher when the introductory period expires. Plus, there are often fees from both banks involved, meaning you pay twice....