The Best Things you can do for your Credit Cards in 2007
It is once again a new year and as we head towards summer, it is as good a time as any to analyze your credit card debt and to make sure that you are under control. Credit card debt has a funny way of sneaking up on you a drowning you without you knowing it. That’s why it is always a good idea to step back and analyze exactly where you are, what your spending priorities are and what your plan is to get out of debt.
One key to getting into fit financial shape is keeping an eye on your credit report. Most people don’t realize that you can get a free copy of your credit report once per year. Each credit reporting bureau can give you a report, so you should make sure that you call and ask for them to mail you one once per year. Why? Credit bureaus are run by people, and people have been known to make mistakes. A mistake on your credit report can actually do a lot of harm to your credit score. You have the right to challenge any entry on your credit report so you should make an effort to check and then double check the accuracy of it. A better credit score can also get you one step closer to getting a card with a lower rate and with better terms. The balance transfers alone could save you thousands of dollars over the life of your debt.
Another good plan is to use many of the online calculators that are out there to figure out a common sense way to pay down your debt to a level you are comfortable with in the time frame you want. It may sound like rocket science, but it is actually a very easy thing to do and your wallet and bank account will thank you. You can also use the calculators to see how much in interest you would pay on your card every year until your debt is paid off. If that doesn’t motivate you to start paying a few extra dollars every month, nothing will.
One of the hottest trends in recent years is reward cards. But many reward cards are not all they are cracked up to be. Many times, the flashy rewards are used to hide below average rates or puny credit limits. Make sure you read the fine print about your new reward card before you apply for it to make sure it is not all flash. In many cases, you would be better off with a non-gimmicked card that offers a competitive interest rate, or if you are already in debt, a card that offers a low, fixed rate for balance transfers. Many rewards cards have less than ideal terms to make up for the fact that they have to pay out these rewards. If you need airline tickets that badly, shop for sales, don’t use a rewards card.
Keeping an eye on your debt helps you to control your spending. If you don’t already have a working budget that outlines your monthly and yearly expenses, it is a good idea to make one. They can help guide you down the road of financial responsibility and that is a road we all want to travel down.