Do you own a credit card?  If yes, do you make it a habit to pay off your charges on time?  Did you know that timely payment can save you from all the trouble that bad debt can bring?  In this article, let’s discuss the causes why people are often trapped in credit card debt and you can stay away from the risk of bad debt.

Don’t Put Yourself At Risk

The longer you put off your online store credit cards guaranteed approval balances, the greater risk you’re in.  Most credit cards carry interest rates that range from 10% to 20%.  Credit cards with rewards usually carry higher rates than non-rewards cards.

Surprisingly, many cardholders do not realize that carrying over a balance from month to month costs them more than their actual purchases.  Add the late penalty cost to your interest rate and your bill will surely be higher than it’s supposed to be.  Yes, if you are a credit card holder, strictly submitting your payments on time can save you from the risk of bad debt.

What about submitting the minimum due on your card?

Even if your credit card offers the lowest minimum due payment, it doesn’t mean you’ve found a good deal.  Submitting only your minimum payment each month doesn’t exempt you from your payment obligations.  Remember, when you carry a balance in your account, you automatically incur the interest rate charge.  This is how credit card issuers make huge profit from their cardholders.

Do you own a reward credit card?

If you are a reward credit card owner, take note that you can get disqualified from redeeming your rewards if you keep missing your due date of payment.  Credit cards with rewards usually have very strict rules particularly when it comes to timely submission of payment.

Add to this, let’s not forget that reward credit cards carry higher interest rates than their non-rewards counterparts.  The best way to benefit from a credit card with rewards is to pay off your monthly balances in full each time.

Don’t Hurt Your Credit

Bear in mind that late payments can also badly affect your personal credit history.  Payment history makes up 15% of your total FICO score.  Yes, even a single late payment can deduct a few points from your total credit score.

To protect your credit history, see to it that you are always on time in submitting your payments.  If you won’t be able to make it on your payment due date, call your creditor immediately and ask for an extension.

Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on credit cards for bad credit,credit cards for good credit and other credit-related issues. Its main objective is to help people build good credit. Copyright © 2008

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By Allison May

Allison May is a credit consultant and a writer for Credit Creators. The resource provides consumers with valuable advice and information on Guaranteed Approval credit cards, Unsecured credit cards for Bad Credit and other credit-related issues. The main objective here is to help people build good credit. Add Allison on

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