Credit Information


Cutting Credit Card Costs


What are the APRs charged by the credit cards in your wallet? If you are paying more than 12% interest on any of them, you are probably paying too much. The prime rate is currently in the single digits, so credit card companies that charge above 13% APR are overcharging. If you have good credit, you should be able to find a credit card with an APR below 12%. Shop around and get the rate you deserve. Do not be afraid of asking for a lower rate on your current credit card if you think you deserve it. A lower interest rate can cut your credit card costs significantly.

Another action you can take to save money is transferring your outstanding balances to a credit card with a low APR. Many credit card companies offer low APRs on balance transfers, and taking advantage of those offers can save you a lot of money. You need to make sure, however, that the special balance transfer rate is not temporary. Otherwise, you will need to transfer your balance again once the offer expires. You also need to find out if either credit card charges a fee for transferring a balance. The fee might be higher than the money you will save from the lower APR.

Some credit card companies issue fees simply for holding their credit card, even if you do not have an outstanding balance (these are called inactivity fees). Close any accounts that currently charge you an annual fee. There are plenty of credit card companies out there that offer their services for free. Make sure to allow about one month between each credit card cancellation in order to prevent your credit score from dropping. Ask the credit card customer service employee to note on your credit report that the account was closed per customer's request.

You also might want to consider paying your credit card debt with part of your savings. These days, banks only reward your savings account with less than or up to 1.5%, while your credit card charges you up to 21% in interest, so you will actually save more money by using your savings to pay your credit card than by leaving it in the savings account. If this is an option you are willing to consider, make certain that you do not drain your savings completely. It is recommended to maintain at least 3 to 6 months of income in your savings account in case of an emergency.

Now that you are aware of which of your credit cards carry the highest interest rates, pay the most you can afford to those cards and pay a bit more than the minimum payment on ones that carry the lowest interest rates. Once you finish paying off the card with the highest interest rate, move on to the next highest, and so on until you pay off all your credit cards. This strategy will assist you in getting rid of the credit cards with the highest interest rates first, and leave you to handle the ones that do not charge you as much. You should discipline yourself to always pay more than the minimum required payment on any credit card. This can significantly reduce the time you spend in debt and the money you will pay in interest charges.

Remember to always manage your credit card spending and do not over spend. It could end up costing you much more than you bargained for.

The subject matter contained in our educational publications is for informational purposes only. We suggest that you consult your financial or other advisors when planning for your specific needs or requirements.

Ana Ribero is a Certified Financial Counselor for Debt Management Credit Counseling Corp., a 501(c)(3) not-for-profit credit counseling organization.


MORE RESOURCES:
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news


How to get a credit card when you've never had one
Fairfield Daily Republic
But the odd thing, as with many high-reward credit cards, is that getting approved for one of these Barclays Uber cards isn't a slam dunk for some Generation Y consumers. Many millennials might have the college degree and the new job, but they're held ...

and more »


The Drive

Future Tesla Buyers May Soon Lose $7500 Tax Credit as Automaker Passes Threshold
The Drive
It seems that Teslas have been selling well; in fact, one could argue that they've sold too well. In a surprise find by publication Green Car Reports, Tesla has become the first manufacturer to surpass the threshold for the federal tax credit in the ...
Tesla Hits 200000 Sales: Countdown Starts for Lower Tax Credits, Then NoneExtremeTech
Tesla sold 200000 cars in the US, so the $7500 tax credit is going awayArs Technica
Tesla Federal Tax Credit of $7500 Coming to an End in 2019NBC Bay Area
Investorplace.com -Motor Authority
all 109 news articles »


South Bend Tribune

Michelle Singletary: Perfect credit score unnecessary for borrowers
Press Herald
FICO also creates industry-specific scores that allow a deep dive into the numbers to determine a borrower's credit risk, and these scores can range from 250 to 900, according to Ethan Dornhelm, vice president of scores and predictive analytics at FICO.
Five big ways your credit can affect your lifeMinneapolis Star Tribune

all 5 news articles »


CNBC

The best easy and no-fee travel credit card - CNBC.com
CNBC
A simple, flat-rate travel card that doesn't cost you a thing.

and more »


Moneyish

Almost half of millennials say that their credit scores are holding them back
Moneyish
The survey looked into the credit knowledge and experience of 2,000 Americans ages 18 to 34, and found that many young adults are suffering the consequences of bad credit. In fact, 24% of those surveyed said they never learned how to build good credit ...



cleveland.com

Applying for an equity line? Unfreeze your credit files first: Money Matters
cleveland.com
Q: We applied for a line of credit with KeyBank. I got a call from them later in the day that my credit file is frozen. I froze with Equifax on Feb. 15, 2015, for 90 days. I think we are past that point. Equifax's letter at the time said they would ...



New York Magazine

Kavanaugh Ran Up Huge Credit-Card Debt From Baseball Tickets, White House Says
New York Magazine
On Wednesday the White House revealed that Kavanaugh is actually so painfully “all American” that he racked up a large amount of credit-card debt due to his love of baseball. The Post reported that over the past decade, Kavanaugh incurred tens of ...
Supreme Court nominee Brett Kavanaugh racked up some serious credit card debt. Don't be like BrettCNBC
Brett Kavanaugh's Explanation For His Crippling Credit-Card Debt Is Pure MAGAVanity Fair
Kavanaugh ran up credit card debt buying Washington Nationals season ticketsNBCNews.com
Washington Post -GQ Magazine
all 8,008 news articles »


TechRadar

How to get £15 of Amazon credit for free today when you top up your account
TechRadar
We can tell one thing though and that's how to take advantage of a couple of Amazon promotions right now that give you bonus credit on top-ups. And as much as we hate recommending such a thing, you're going to have to put your shoes on for one of them.



telegraphherald.com

Your money: How to get a credit card when you've never had one
telegraphherald.com
But the odd thing, as with many high-reward credit cards, is that getting approved for one of these Barclays Uber cards isn't a slam dunk for some Generation Y consumers. Many millennials might have the college degree and the new job, but they're held ...



CUNA News (press release)

Defend Your Credit Union's Network
CUNA News (press release)
Credit unions today are well aware of the threats posed by malicious actors—insiders and outsiders—looking to gain access to their confidential data. Yet, despite heavy investments in staff and security technologies, the bad guys are winning the battle.


Google News

home | site map
© 2007