April 10,2009
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Credit Score Navigation, Pt.1
Good financial health.This article picks up from a general environmental perspective given a previous series entitled: "Credit Score Drift". Feel free to review it first.
Why have a credit card at all?:
Although it may be wise for some people to cut back spending if they have little self-control to not use credit cards at all, this, however, may not be the best answer for most consumers. With a little discipline, using credit cards wisely can actually strengthen a person's financial position. Credit cards afford leveraging that allow for buffering cash flow interruptions. This could be the difference between having your lights turned off or not. Getting to work or not, when your car breaks down. Heaven forbid you're out of state and no one will take an out-of-state check. All kinds of things can pop up where, if you can't pay right now, your expenses and loses become much greater and you your options can be severely limited.To spend or not to spend?:
We have explained some of the usefulness of having a credit card in the first place. But, why use it? Because a credit card with good terms and rates is much better than a poor one. The more a consumer uses a credit card responsibly, the better that person's credit score becomes. Then, the better offers become available to that person. Responsible and frequent use is one of the best ways to build a credit score and, many times, can also bring cash rewards from the many programs available from all the major lenders. It can add up to sever hundred dollars in your pocket (or account).What's the quickest way to boost your score?:
If you've racked up high credit card debt, your score is probably dwindling as we speak. Most of the major lending banks are aggressively jacking interest rates, lowering credit limits and, generally trying to get rid of consumers with high debt. These consumers are killing their economic health. Paying down that debt quickly can produce a substantial credit score boost within a month or two. It must be a substantial reduction, however.