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.
* Keep your cards and don't use them. Some experts recommend that you keep accounts open in order to improve your credit rating. This can help, but if you're not using the cards it won't help much. And by keeping the cards, you open up the door for temptation.
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.
*If you are disciplined you could use the card every now and then to keep it active and boost your credit scores. But the temptation would really be there to keep spending until you reach the limit. Then you are back in debt and that is the last place you want to be.
* Close all accounts except for the one with the lowest interest rate, and use it sparingly. This is a popular option. It allows you to have a card to use in case you really need it and to improve your credit rating, yet you don't have multiple cards tempting you.
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.
The latter should be a last resort because credit cards are helpful in building good credit. They can help improve your financial situation by helping you obtain low interest rate loans when you need them.
* Keep your cards and don't use them. Some experts recommend that you keep accounts open in order to improve your credit rating. This can help, but if you're not using the cards it won't help much. And by keeping the cards, you open up the door for temptation.
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.
*If you are disciplined you could use the card every now and then to keep it active and boost your credit scores. But the temptation would really be there to keep spending until you reach the limit. Then you are back in debt and that is the last place you want to be.
* Close all accounts except for the one with the lowest interest rate, and use it sparingly. This is a popular option. It allows you to have a card to use in case you really need it and to improve your credit rating, yet you don't have multiple cards tempting you.
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.
The latter should be a last resort because credit cards are helpful in building good credit. They can help improve your financial situation by helping you obtain low interest rate loans when you need them.
About the Author:
Before considering consolidation as a way to get your debt paid off, research the debt consolidation loan consequences. It isn't always a good idea to consolidate your debt. Find out why on the Inside Debt Consolidation website at http://www.insidedebtconsolidation.com
posted by Credit Counseling at
6:04 PM
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