Things you don’t know about Credit Card Debt are the key to increase Credit score
Credit card companies use all kinds of tricks to make money but their most valuable tool is misinformation! What you think you know about using credit cards is probably the same knowledge that is taking money from your pocket and putting it into your card issuer’s bank account!
You’ve probably been told that the way to increase credit score and build credit is to use your credit card and pay off the balance over time, right? While that proves that you can make payments on time, you’re paying your card issuer interest and actually may be harming your credit score! Your credit history reflects payments made on time, certainly, but by carrying a balance on your card you are also showing that you have to take on debt in order to get goods. If you want to raise credit scores, running up debt is not the way to do it.
If you want to fix bad credit by starting to pay all your bills on time, beware of your credit card payment due date! If your issuer says that the payment is due on the 20th and you mail it on the 15th, it might get there on the right day but most issuers cut off posting payments at noon or some time in the morning. If your payment arrives in the afternoon mail it won’t get posted until the next day—making you late and giving the credit card issuer a chance to raise your rates!
You might also think your plan to move your credit card debt to a low or zero interest credit card is a smart move toward fixing credit card woes but read the fine print. What the issuer won’t tell you is that if you use that card for purchases, you could be violating the terms and incur a new, high interest rate.
Credit card issuers rely on misinformation and disinformation to wring out the highest rates possible from their card holders. If you are having trouble with credit card debt and wondering how to fix credit problems, your best bet is a non-profit credit counseling service that can negotiate your interest rate, payment plans and even reduce your balance.
