That nasty little thing called debt...
My name is Tyeese. And I have debt.
Despite the fact that I make credit card payments monthly, my balance hardly moves because the interest I earn negates the difference. BUT -- I got good news today. My credit score went up by 20-30 points. How did it happen? Well, first of all, after seven years, all credit blemishes disappear into the abyss. So, my indiscretions from college are now ALL a thing of the past; and I've been pretty good since then. Secondly, one of my cards decided to give me a higher limit.
How does a higher limit help you? If you owe $9,000 on a card that has a $10,000 limit, that will lower your credit score even if you pay on time, because you're too close to the limit. And, ideally, you shouldn't have more than 30% (or $3,333) charged on each of your credit cards. But, if the card then raises your limit to $25,000, the $9,000 you owe is only 36% and all is well with the world. The key is not to get the higher limit and keep charging, though.
The bad news of today is I used this calculator to see how long it would take me to pay off my credit card balances using the minimum payment. I would be almost 70 years old before it's gone (never mind school loans!).
SIGH... the take homes here are: get higher limits on your credit cards (if you can be trusted!) so that your FICO score goes up, and you can get better rates on your mortgage/car loan or lease/new credit card (some jobs check your credit score before they hire you also); and pay more than the minimum payment, even if it's an extra $20 a month. Use the calculator and see how it can make a difference.
Lastly, consider putting your tax refund or tax rebate toward credit card debt!
If you want pointers, check out Suze Orman's show on CNBC. She's great!
Dr. Ty
From the GAL Blog
www.getalifecampaign.com
Despite the fact that I make credit card payments monthly, my balance hardly moves because the interest I earn negates the difference. BUT -- I got good news today. My credit score went up by 20-30 points. How did it happen? Well, first of all, after seven years, all credit blemishes disappear into the abyss. So, my indiscretions from college are now ALL a thing of the past; and I've been pretty good since then. Secondly, one of my cards decided to give me a higher limit.
How does a higher limit help you? If you owe $9,000 on a card that has a $10,000 limit, that will lower your credit score even if you pay on time, because you're too close to the limit. And, ideally, you shouldn't have more than 30% (or $3,333) charged on each of your credit cards. But, if the card then raises your limit to $25,000, the $9,000 you owe is only 36% and all is well with the world. The key is not to get the higher limit and keep charging, though.
The bad news of today is I used this calculator to see how long it would take me to pay off my credit card balances using the minimum payment. I would be almost 70 years old before it's gone (never mind school loans!).
SIGH... the take homes here are: get higher limits on your credit cards (if you can be trusted!) so that your FICO score goes up, and you can get better rates on your mortgage/car loan or lease/new credit card (some jobs check your credit score before they hire you also); and pay more than the minimum payment, even if it's an extra $20 a month. Use the calculator and see how it can make a difference.
Lastly, consider putting your tax refund or tax rebate toward credit card debt!
If you want pointers, check out Suze Orman's show on CNBC. She's great!
Dr. Ty
From the GAL Blog
www.getalifecampaign.com
posted by #1 GAL, Dr. Ty! at
9:56 AM
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