A US credit card can be an important financial asset to have around as it can be used for so many different things. With owning and using a credit card comes the need to pay it on a monthly basis. Here are some important guidelines to consider when making a US credit card payment.
US Credit Card Payment Tips
- Always pay at least the minimum required payment on your credit card every month.
- If you pay less than that then the company considers you to be late and you will have to pay a late charge.
- If you do this often enough then your interest rates could rise. If universal default is put into play then the interest rates could also increase on your other debts. While one payment made below the minimum required may not affect your credit score too much, making this a habit is deemed a credit delinquency and can definitely impact your credit score in a negative manner.
- Be smart when it comes to making your US credit card payment every month!
Delinquent US Credit Card Payments
- If you do have any delinquent accounts then do what you can to get up to speed.
- If you pay less on these accounts then you are supposed to then you will be charged late fees and the credit bureaus will be told that you are late in making your payments. This is not what you want!
- Once you make your minimum payments on your credit card if you have any money left over then put it towards a delinquent account. This will help make it current again.
- If you are late making payments or coming up with a payment arrangement for 180 days (approximately six months) then your account may be sent to a collection agency, charged off or both.
- It is never a good practice to charge your credit card beyond the credit limit you were given. This will cause your US credit card payment to be higher than you want it to be (and to remain high until you can pay it down) and it will also cause present and future lenders to question whether or not you know how to handle credit properly.
- Any extra money you have should be used to get your balance down to a more reasonable place.
In order to have a credit score that is as good as possible, the closer your balance is to zero the better. In particular having a balance that is close to your credit limit looks bad for you. A high credit balance will increase what is known as your credit utilization and it also harms your credit score. A low balance shows that you are a person who can handle credit in a responsible manner.
