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Crash course to avoid credit card debts – Change your card using habits – part 3

I hope you are enjoying my post, this is the last segment of the article. Today you’ll be knowing the final points.

8. Maintain active accounts - Banks and credit companies nowadays have taken an initiative to close inactive credit card accounts. They are doing it to prevent their exposer to risks.It doesn’t matter who closes the accounts, but it is definite that it will not good for your finances.

It is advised that you should pay off the debts on those cards, and lower your uses of those credit accounts as much as 10%. Only then you can think of closing an account. If you are not using them frequently, it may give a sign to the creditors that you are no longer interested to maintain the account. So, they might want to close the account permanently. The least you can do that use your card for a smaller usage each month or so, then repay the total credit balance in full. For an example – you can arrange your payments for the monthly internet bill, charge directly each month from your credit card account which you are not using frequently. By this way your account would be active regularly and your bill will be paid on time. After that you pay your credit account each month on time.

9. Choose the perfect rewards card – Rewards cards will be effective for you if you are not making the interest payments on the account. Avoid carrying balances in your cards. Those cards which normally packed with offers like cash back or free gifts may have higher interest rates; sometimes nearly 20%.

Research your options in different websites when you are ready to get your reward card. Check out theses two websites also – and for more information. Always choose a reward card which suits or matches with your needs, like – if you love traveling, there is no point to pick up cash back reward cards, you can choose free air miles instead.

Don’t forget to read the entire terms and conditions before choosing a rewards card. You must understand the limitations of your reward card to avoid extra spending. But one thing you must remember, don’t be a mindless fool. It is very easy to spend your money, but it is wrong to spend it just to get free offers or free air miles. Justify your expenses before doing any needless spending for the sake of earning points. Because at the end of the billing, you..and only you have to bear the entire balance out of your pocket.

10. Reduce your rate – Get a fair idea about your credit score, your payment record and also the duration of your account before trying to reduce your credit card interest rate. Contact the customer care service and apply for a lower rate based on your total time span while maintaining the account, credit score and payment history.

According to the stats, the average interest rate of credit card is 14.3%. So, it is your rights to enquire the reason if you’re paying greater than the average. If you don’t become successful at first try, don’t be harsh. Try again several times until you got a decent rate.

I hope if you realize how much credit card is important to you, you will definitely maintain those habits. It is essential to maintain your cards such a way so that you can be far away from unwanted debts along with enjoying a good financial life. Until next time… :)