subject: Why Manage Your Secured Credit Card Responsibly [print this page] Many secured credit cardholders today are wondering why they are frequently reminded to manage their existing lines of credit in the best way they can. Are you one of them?
If you are then, this article will surely provide the answer to your question. This is because, in the paragraphs below, we have enumerated and discussed the two reasons why you should responsibly manage your secured credit card account.
To avoid incurring pesky fees and charges. If youre keen on keeping your credit card payments minimal then, you should resolve to handle your line of credit responsibly. After all, delinquent credit cardholders are often penalized with pesky fees and charges all because of their poor credit habits.
For instance, those who cannot keep up with their credit card bills usually incur late payment penalties and surcharges. Meanwhile, those who pay just the minimum amount due and decide to carry balance from one month to the next often make huge payments on interest charges. Moreover, cardholders who max out their lines of credit also make extra payments on overdraft charges as well as on declined transaction fees.
This goes to show that poor credit habits can indeed cost you a great deal of cash. Hence, to avoid incurring these unnecessary charges, you should strive to manage your secured credit card in the most responsible way you can.
To build or maintain a solid credit profile. Did you know that your credit and payment activities are being monitored and reported to the three credit bureaus? In fact, they influence the computation of your credit score a three digit number which determines how worthy you are to receive and manage different lines of credit. The higher your credit score is, the greater will be your likelihood of qualifying for and being granted affordable credit programs. On the other hand, the lower your credit rating is, the more difficult it would be for you to receive programs with low rates of interest and flexible payment terms.
This only means that if you wish to enjoy excellent financial prospects, you should always stick to good credit habits, which entails responsible management of your secured credit card. After all, by simply keeping up with your credit card bills and by using just a reasonable percentage of your credit limit then, you can expect to build and maintain an excellent credit reputation. And in time, your good credit standing can serve as your key towards unlocking doors to excellent financial opportunities, which you can eventually use for financing an urgent need.
Some Final Words
Setting a limit to the number of secured credit cards youll manage can also work to your advantage. After all, this will help minimize your risk of falling into debt traps as well as of incurring debts you might find hard to pay back.
Your good credit habits can also be instrumental for you to receive better credit card programs, like unsecured credit cards. This is especially true today as issuers often reward their cardholders with excellent credit programs, with higher spending limits and flexible payments terms to replace their old credit card accounts.
