My Credit Card Balance is Zero ? Now What Do I Do?
You have worked hard and paid off that credit card. Now you can start shopping again, right? Hopefully that is not the choice you make. You will be right back where you started. Here are some other options.
*Some financial advisors say that if you keep your credit card but don't use them they can boost your credit scores. That may be the case. But an empty credit card lying around the house may be quite tempting.
If you have accounts that you are not using you will probably not be reviewing them every month. This is a perfect situation for a person who wants to steal your identity. They could do a lot of damage before you ever notice.
* Keep your cards and use them occasionally. This will build up your credit rating, as long as you pay the balances in full each month. But still, by keeping the cards you could be tempted to run up the balances again, putting yourself right back where you started.
*A less tempting option is to hold onto only your lowest rate credit card and close all the other ones out. This gives you something to fall back on in an emergency situation but you have all those other accounts tempting you to buy.
Even one credit card can get you in trouble if you are not in control. So avoid increased credit limits that give you that extra rope you need to hang yourself.
*If you don't trust your ability to control your spending it is best to close all your credit card accounts and not have access to credit. This may seem a bit extreme but it is better than going back into debt.
Keep in mind, however, that using credit cards responsibly can build up your credit rating, making it easier to get good rates on loans for necessities in the future.
*Some financial advisors say that if you keep your credit card but don't use them they can boost your credit scores. That may be the case. But an empty credit card lying around the house may be quite tempting.
If you have accounts that you are not using you will probably not be reviewing them every month. This is a perfect situation for a person who wants to steal your identity. They could do a lot of damage before you ever notice.
* Keep your cards and use them occasionally. This will build up your credit rating, as long as you pay the balances in full each month. But still, by keeping the cards you could be tempted to run up the balances again, putting yourself right back where you started.
*A less tempting option is to hold onto only your lowest rate credit card and close all the other ones out. This gives you something to fall back on in an emergency situation but you have all those other accounts tempting you to buy.
Even one credit card can get you in trouble if you are not in control. So avoid increased credit limits that give you that extra rope you need to hang yourself.
*If you don't trust your ability to control your spending it is best to close all your credit card accounts and not have access to credit. This may seem a bit extreme but it is better than going back into debt.
Keep in mind, however, that using credit cards responsibly can build up your credit rating, making it easier to get good rates on loans for necessities in the future.
About the Author:
Before you consider consolidation as a way to get your debt paid off, research the debt consolidation loan consequences. It isn't always the best solution to consolidate your debt. Find out why on the Inside Debt Consolidation website
posted by Credit Counseling at
10:00 PM
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