Easy Ways To Improve Your Credit by Making Credit Card Payments
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Too often people find their credit history marred by a late payment on their credit card. It is often easy to forget or overlook the small, but important, bill sitting on your desk. Unfortunately, missing this payment will remain with you for a long time, and others will see it! There is no reason to miss a credit card payment, unless there has been some sort of error getting your your bill! If you get your bill, pay it immediately. Though it is understandable, sometimes that is not an option. So here is how you can do your best to ensure a prompt payment, and avoid those late fees besides!
Whenever you get your bill, take a look at the due date. Usually it will be almost a month from when you get your bill. This gives you plenty of time to get your payment in. The key to doing this is pre-planning. Figure out what day is exactly two weeks before your payment is due. Mark it on a calendar, or write it on your forehead, or staple it to your hand (no, don't REALLY do the last one! ). Whatever you have to do to leave yourself a reminder.
When that day comes around, mail your bill out. By mailing two weeks early, you are making sure that there is plenty of time for your bill to get to your credit card company, even if the mail is slow for some reason!
This also allows you to pay early! Paying your bill early will help you in the long run, in case you do miss a payment for some reason. Not only will other credit cards see that you always pay early, or often do, but your current card is less likely to raise your interest rate in the event of you missing a payment.
Pay More Than Your Minimum Credit Card Payment!
By paying more than the minimum, you are demonstrating the financial security to handle the responsibility of a credit card. On top of this, you will reduce your balance faster. Most cards will have a minimum payment required (usually 10% or $25.00, whichever is greater). By paying an extra 5%, you can be sure that your bill is more than covered.
This, as well as paying early, will also help you in the event that you are late on a payment, or miss one entirely. Your credit card company will see that you always pay more than required, and it will weigh in the decision to raise your interest rate or keep it the same.
Keep Track of Your Credit Card Spending As Well As Your Payments!
Don't go spending well more than you know you can afford. Over-limit fees can cost you as much as a good-sized purchase can, plus it can show up on your credit report. Staying within the limit protects you from getting in over your head, and ruining your credit.
Combine these three things and you will see your credit score grow better and better. Responsibility is required when dealing with a credit card, so show that company you have some, and the benefits will be enjoyed by them and you!
Posted by jonathan on February 03, 2005 at 06:39 PM