Careful Shopping Can Be A Credit Cleaner
There are many reasons a low-interest credit card is more cost effective than a high-interest one. More than a few are obvious. The fact that you’ll be paying off a high-interest card until the day you die is a big one. When you get that high-interest card, there are few ways to fix your credit score once you’ve been hit with a late fee.
However, sometimes it’s not as easy as simply “getting” a low-interest card. People with bad credit who need credit to stay afloat in these bad economic times will agree to just about anything if it will pay their bills and help buy the food his or her family needs. It isn’t like people desire high-interest cards; it’s a matter of necessity. Often times their credit simply isn’t good enough to be approved for a card with a low APR. Unless you fix your credit score, you will have difficulty attaining a new, low rate card.
It isn’t necessarily an outright bad thing to have a high-interest card. By purchasing small items where cost is relatively low, card holders who pay the full amount when the payment is due should not have trouble with high interest rates. They will definitely be there, but they will be far less visible and damaging than those with cards with APRs in the teens and twenties.
Credit card company tactics…
Whenever you make a purchase, a percentage of un-purchased debt is added on to your monthly credit card statement as a way for the credit card company to make money. There is little doubt it is a sneaky and, often times low, tactic for making serious money when people in need make purchases on items they can’t afford. If what they buy is a luxury item, not a lot can be said to show empathetic support.
However, when the card holder needs to buy a week’s groceries, or clothing for their children, the audacity of credit card companies to change, say, 19% on top of what the card holder already owes seems reprehensible. And often times, in cases of needy people with bad credit, it is.
However, by being a careful credit shopper you can eliminate the need for relying on high-interest credit cards at all. The key to how to fix bad credit lies in the fact that, if you pay your monthly payment on time, and pay over the minimum payment due, your credit score will strengthen to the point where you can apply for, and get, a low-interest card.
It’s a matter of smart shopping…
If you apply for a card with 0 APR for six months, take your other credit cards and do a balance transfer. Then make as many higher than minimum payments as you can until the six months is up. By that point, you’re credit score will be high enough that you can find another low-interest card and close out the last one. By continuing in this vein, you will find your score growing stronger, and you’re debt decreasing.
A credit cleaner need only be brought in when the situation gets dire. When, for instance, you have an accident that takes you out of the workforce and you aren’t able to make those monthly payments. There are, however, options you can take should that situation arise.
Some credit card companies allow “payment protection” wherein you pay a monthly fee to cover future payments if you have to miss a month. By maintaining a clean payment history, you will be eligible for other benefits, including, but not limited to, finding another 0% APR card to transfer your debt onto should you need to.
There are many ways to damage your strong credit. Missing payments for months at a time will not look good to credit card companies, and will drastically ruin your credit score. When that happens, you’ll want to get in touch with a credit cleaner to help guide you through the rough patch to get you back on your feet, and back to a debt-free existence.
Lexington Law is a credit cleaner who specializes in how to fix bad credit. For years, the firm has helped millions of individuals and families achieve financial independence from credit card companies.
Article from articlesbase.com
