Most people have a credit card of some sort. Most likely you use that credit card, alot. They do come in very handy, especially if you find something you want to buy online that you couldn’t find in stores. They also come in handy when you are short on cash and you need to pay a bill. Most companies accept credit cards as a payment. Infact, alot of companies only accept debit or credit cards. But what happens when you charge way to much on the card? What happens when you can’t pay off your credit cards? After all can’t you just get a new one and start using that one?
[Read: The Decision to Pay off a Mortgage Early]
What Kind of Credit Cards Are There?
FIrstly lets go over the different kind of credit cards you have to choose from. There’s a wide variety of credit cards available for you to choose from. Let’s take a look at a few if them.
- Capital One.
- Master Card
Why Should I Pay Off My Credit Cards
Now you need to decide whether or not you should get one. Will you be able to pay off your credit cards. Can you afford it? We have went over the various types of credit cards out there you can explore and choose one that seems rights for you. If you decide getting a credit card is the right dedication for you why should you pay them off? Why is it so important?
1. Build Credit.
Ahh yes, here’s a good reason to pay off your credit cards. This is perhaps the easiest way to build your credit and maybe then more options will be available to you. Interestingly, the more credit cards you get and pay off the more it improves your credit score. It’s most likely got something to do with being consistent with your payments. Pay off your credit cards regularly in a timely fashion and watch that credit score go up.
2. No Loan.
So you have found the the perfect home for you and your family to settle down in. It’s perfect, it’s got enough rooms for all the children and the perfect view. You go down to the bank to take out a loan only got find your application has been denied. Why? Well they proceed to tell you that you have an outstanding credit card balance from way back when. You ment to pay off your credit cards, but our just never got around to it. Now you can’t buy that beautiful home for you and your family.
Who doesn’t know that credit cards charge interest fees the longer they are left unpaid. Your balance when you checked it last could have been only twenty dollars. But if you let it go a few months without paying on it, depending on the interest rate and the time you have went without paying on it, you could possibly end up with a two hundred dollar bill. It would be a good idea to pay off your credit cards as soon as you can to avoid this issue.
4. More Opportunities.
Once you pay off your credit cards you will begin to notice alot more opportunities opening up for you. You will notice that alot more companies will be more than willing to approve you for more credit cards. This is a good thing in itself, yes, but be sure you can pay off the other credit cards too to keep this good streak going.
[Read: How Soon Should I Use A Credit Card After Paying Off Debt?]
5. Avoid the Bad Reputation.
If you don’t pay off your credit cards the bank amongst other companies we all use daily look down upon that. Phone and cable companies, cellphones companies, you get a bad reputation for not paying your bills. This makes it hard for you to get even the most basic luxuries most of us get to enjoy. Even your electric company looks at your credit, and if they see that outstanding credit card balance they will see that you have a reputation for not paying off your credit cards or any bills they will assume. The thing with big companies or any random human being for that matter, is they go by first impression. First impression is huge, we know this, so if you go into a bank, or a cellphone company knowing you haven’t paid off your credit cards, even if that is the only outstanding bill you have, that will give the impression you are horrible with money. So why then, would they consider a contract with you knowing, or assuming rather that they won’t get paid? They won’t. So make sure you pay off your credit cards to set yourself up for success, not failure that most see when they decide to get a credit card.