Credit Score News, Tips & Advice
Website CertifiedPrivacy Protected
Credit Score News, Tips & Advice « Credit Scores > Credit Score Tips > Avoiding credit card debts to increase credit score

Avoiding credit card debts to increase credit score

By Brian Anderson
Published: Sunday, September 20th, 2009

When it comes to credit, many would advise you do go for installments over revolving credits. This is because installment loans are much easier to pay because the dues do not change until you have already completed payment. This is in contrast to revolving credit which accumulates over time as long as you are using your credit card.

Using credit cards has its own advantages; that’s why many can not seem to live without it. The truth is, credit cards are not evil and they do come in handy. However, if you don’t know the proper way of using it, your credit score suffers. More than that, credit card debt could be one of your greatest financial concerns. 

Many credit score tips stated in different ways would tell you that it’s best to use both kinds of credit: installment and revolving. Utilizing both could really up your credit score and make your image more desirable to creditors, lenders, insurance agents and banks. Of course, with this comes the proper handling or dues. 

To escape the horrors of credit card debt, here are some credit score tips you can apply. 

Create an emergency fund

There’s no argument in the convenience credit cards give to users. What else can be easier than to swipe your card each time you need to pay something? Credit cards come in handy, however this is also the reason why most people are tempted to use their credit card for everything they pay for already. You can resist temptation if you have an emergency fund you can use whenever you feel like splurging or whenever there is a need to pay large amounts. 

Have a plan

One of the best credit score tips you can use is to have a plan on paying your credit card debts and be actively involved in it. If you have a plan, you will know exactly which among your bills needs to be paid attention to first. Planning sets your priorities on payments straight. Remember that whether you have excesses or not, you should plan to pay off balance so your dues won’t accumulate over time. 

Don’t be fooled

People who have credit cards think that they have turned richer and can already purchase all the expensive items they see. Don’t be fooled because even though you don’t literally shell out some cash for the things you buy via your card, the price of the items do not change nor does your buying capability. Remember that your credit card is not a free pass to the expensive things. Some credit score tips would tell you that you can only actually afford expensive items if your income permits you, or if you save up for them. 

Pay all bills

As much as you can, you should avoid having credit card bills that are past due. This happens if you forget about paying your bills on time. The more past dues you have the more difficult it would be to bring them on current again. An advice from the many credit score tips you can use is to set a monthly budgets for your past due credit cards so you can bring them on current again.

No Comments

No comments yet.

RSS feed for comments on this post.

Sorry, the comment form is closed at this time.