Consumer Credit Reports Take A Beating This Time Of Year
November 23, 2004 (Press Release) --
Friday marks the day credit reports begin to take a beating with the busiest shopping day of the year and SPENDonLIFE.com experts warn consumers to watch out for credit card traps. SPENDonLIFE.com (http://www.spendonlife.com), a consumer savings website that provides credit reports, offers 10 tips for consumers to follow in order to maintain a clean credit reports.
1. Late Payments. Avoid making late payments like the plague. Even one late payment affects your credit report score. Making late payments also allows credit card companies to hike up your interest rates.
2. Maxing Out Your Credit Card. Do not buy it if you cannot pay it back. It is that simple. You will be charged for going over your credit card limit.
3. High Interest Rate Cards. Always look for the lowest rate of interest on a credit card. You should avoid paying high interest rates altogether if you have good credit.
4. Adding a Balance Transfer to an Already Charged Card. Watch out. You might have to spend a bundle even if the deal sounds great. Credit card companies often make you pay off the balance transfer first before you can pay off the rest. That means you will be paying interest on the rest of the balance.
5. The Two-Cycle Average Balance. Avoid at all costs. You are better off with a card that uses the Average Daily Balance method.
6. Using Your Card like An ATM. This is not a wise decision. The fees are often outrageous and the interest rates even worse.
7. Using a Home Equity Loan to Pay off Debt. This may get you into more debt than you are already in – plus, you could lose your home. You do not want to put your house at risk.
8. Helping a Friend Get a Credit Card. You can get into serious debt even if you are simply trying to help a friend out. Co-signing for a credit card makes you as responsible for the charges as they are.
9. Paying Off the Highest Balance First. Many people fall into this trap because this is what they have always heard. In fact, you should pay off the credit card with the highest interest rate first.
10. Not Paying Off Any Cards. Again, even one late payment on your credit card can mess up your credit score. Your other cards can raise your interest rates if your credit score drops. They’ll consider you more of a risk.
Taking care to maintain a clean credit report should be at the top of your list. SPENDonLIFE.com offers a free service to help consumers lower their monthly bills. Consumers can save on loans, insurance, long distance, debt management, credit reports and more. The company has been a leader in helping consumers save money since 2001.
1. Late Payments. Avoid making late payments like the plague. Even one late payment affects your credit report score. Making late payments also allows credit card companies to hike up your interest rates.
2. Maxing Out Your Credit Card. Do not buy it if you cannot pay it back. It is that simple. You will be charged for going over your credit card limit.
3. High Interest Rate Cards. Always look for the lowest rate of interest on a credit card. You should avoid paying high interest rates altogether if you have good credit.
4. Adding a Balance Transfer to an Already Charged Card. Watch out. You might have to spend a bundle even if the deal sounds great. Credit card companies often make you pay off the balance transfer first before you can pay off the rest. That means you will be paying interest on the rest of the balance.
5. The Two-Cycle Average Balance. Avoid at all costs. You are better off with a card that uses the Average Daily Balance method.
6. Using Your Card like An ATM. This is not a wise decision. The fees are often outrageous and the interest rates even worse.
7. Using a Home Equity Loan to Pay off Debt. This may get you into more debt than you are already in – plus, you could lose your home. You do not want to put your house at risk.
8. Helping a Friend Get a Credit Card. You can get into serious debt even if you are simply trying to help a friend out. Co-signing for a credit card makes you as responsible for the charges as they are.
9. Paying Off the Highest Balance First. Many people fall into this trap because this is what they have always heard. In fact, you should pay off the credit card with the highest interest rate first.
10. Not Paying Off Any Cards. Again, even one late payment on your credit card can mess up your credit score. Your other cards can raise your interest rates if your credit score drops. They’ll consider you more of a risk.
Taking care to maintain a clean credit report should be at the top of your list. SPENDonLIFE.com offers a free service to help consumers lower their monthly bills. Consumers can save on loans, insurance, long distance, debt management, credit reports and more. The company has been a leader in helping consumers save money since 2001.
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