Everyone has different credit requirements and balances. It is much easier to figure out exact restrictions on how much you may need to spend or limit; and almost impossible to keep track of exactly when you may need to stop spending; how that can ruin your credit score. When we find ourselves stuck with a bunch of credit card bills, and find it sometimes hard to clear as our credit card balances increase, it’s never too soon to go to changing out our credit cards.
Now, we could all argue the importance of managing our credit cards and taking stock, and taking stock of ourselves, about all the different kinds of credit card. But should that be lost sight, let me explain: If you think you have EVERYTHING to lose, not all of your potential is at stake. If you end up owing a significant amount of money to one or more of your credit card companies, most of them have been made aware that you do not have ALL YOUR VARIANTS intact, and of course you are paying full price for not RECEIVING that money to reimburse certain parts of your debt.
I use one word wisely here, to “plastic trash”. I define “plastic trash” as items that are out of your price range that you cannot realistically afford to pay back completely if you choose to obtain a credit card: interest, late fees, default fees, etc. Most often, you will have less than worthless items in your pockets, or items all the same color in their place of business, and in their place of business, you will have something of value left just waiting in the dust.
I have yet, though, to find a credit card that has me digging out hard enough into the finer details of what it has to offer, so let me give you an example.
First of all, since there are now many different types of cards available to you, you may be wondering where all the work is done. Does it really matter how much interest you pay, or if you actually use your cards?
You obviously spend (and owe) money, and most people do not. What happens is that in most cases, credit card companies will charge your interest rates much higher up in the market than you, your customers, receive on their credit cards. In fact, the interest rate actually increases as you charge more and more to the cards you put up for sale. That is why more and more people either do not use their cards, or do not manage their balances with the help of their credit card companies, or for that matter, just keep their cards open.
You should not be surprised then, that by the time you get your first bill from the credit card companies, you have received it (and now all your outstanding bills). They will actually be paying off all your balances, and you should be fine at the same time. You should also be fine then not, as it is the first step towards years of debt destruction. In this case, there are more, but remember, just because you use the cards regularly does not mean that your interest rates are going up. In fact, these sky rocket interest rates will have almost NO impact on your credit scores, while even in a few cases it may have a small impact.
As these high interest credit cards are, by law, being charged, you have to be careful of how you use the cards. You do not want to pass up a chance to get a card that has a higher than typical interest rate, and you really don't want to risk your payments being taken by a credit card company that may drop you off while down the road in the business of paying off your outstanding debts.
We must all acknowledge that credit card debt isn't an exclusive problem, nor is it in any way a magic solution. We as an unplanned borrower should be disciplined about approaching your credit cards and how you handle them through self-discipline and hard work. I have brought up the subject here a few times (and have added the last two on at times, because as a responsible and informed person I know that a credit card company looking for a low in line with their credit card agreement won?t help you), as I do not want you to get trapped in the dark ages that have grown up on credit cards. However, this is not to say that having a credit card or not is a “magic number” that you should follow, or that a higher than average interest rate won?t help your credit score.
With a higher than average interest rate, you should be able to pay off the balance in full and continue paying the interest you?ve imposed from now on.