Loans & Credit Cards
People do not purposely set out to entangle themselves in a web of debt, but it happens. Over time, you find you have charged a few too many luxuries you thought were necessities, or that the interest rate you were assigned can be lowered from the original rate because of rate availability or the improvement of your credit rating. Here are a few tips on how to manage your loans wisely:
- Look into refinancing your home or auto loan. If your credit has improved since you requested the loan, or if a financing company is offering a special deal, go for it. Refinancing can lower your monthly payment, decrease the amount of time according to your original repayment terms or both.
- Consider consolidating your debt into one loan. If you have several credit cards and loans with separate due dates, why not simplify your life with a single loan? Your monthly payment can be greatly reduced by consolidation.
- Contact your credit card companies to request a reduction of your current interest rate. If you have a good payment history, many credit card issuing companies are happy to lower your rate to minimize the chance of your transferring the balance to another company’s card.
- Read over your mortgage documents. If you are paying Private Mortgage Insurance, you may no longer have to if you have over 20% of equity in your home.
When selecting the best credit card for you, there are several things to consider:
- Select the card that best suits your spending and payment lifestyle. If you plan to pay your balance in full each month, select a card without annual fees but with perks that benefit you. If you plan to carry a balance on the card, choose one with the lowest rate and the fewest fees.
- Pay attention to interest rate, annual and application fees, late and over-the-limit fees and balance transfer terms and information.
- Use your cards wisely.
- Extra protection when you shop online.
- Handy for travel.
- Good for emergencies when cash is not available.
- Payments made on-time reflect on your credit history, and increase your credit score.
