Many people like to blame credit cards for all their financial problems. Somehow, they have come to a conclusion that if they did not have credit cards, they would not be in the financial hard place they have found themselves in. But the truth is quite the opposite. Credit cards can be very useful and financially helpful if you use them responsibly.
One of the biggest problems people have with their credit cards is due dates. While people don’t have a problem pulling out that piece of plastic and saying ‘charge it’, they seem to forget to write that check on time at the end of the month.
When it comes to Credit Card problems, due dates can be the landmine that leads to credit woes. So, here’s what you need to know about them.
They are not flexible – When you get your bill each month, make a note of the due date for your payments. This is part of your responsibility. When you signed up for a credit card, you agreed to pay on time every month. You should hold up your end of the bargain. If you try to let things slide a month or two, the credit card company is going to likely fine you for your tardiness and also up your interest rate. This is the point where many people get angry and go on a rampage. But remember, you are the one breaking the rules that you agreed to, not the credit card company. When you wanted to use their money, they let you, but they also expect you to be responsible and pay it back as you have promised.
They will impact your interest – Know the rules of your credit card. Many companies will levy a higher interest rate once you have missed a payment. Essentially, the company offers you a lower rate as a gesture of faith that you will keep your end of their agreements. Once you don’t, they remove their gesture and your interest rates go up.
They may impact your credit – A late payment or a series of late payments may be reported by the credit card company to your credit agency. This is their job. Don’t get mad when they report these late payments. They are supposed to report any breeches of contract you have, as a way to let other lenders know whether you are a responsible risk or not.
You can ask forgiveness – One thing many people don’t realize is that you can ask forgiveness if you break the rules once. There are always special conditions that cause people to break rules a time or two. It could be a family emergency or even a natural disaster that messed things up and caused you to be late in your payments. Call the credit card company, explain the situation, and make sure to get the payment in as quickly as you can. They may be willing to remove any late fees because you took the initiative to call.