You can do your best to cope with the credit crunch by developing a few simple habits.
Read Your Billing Statement Inserts
Many of us throw away the extra paper that is included in the envelope of the credit card Bill. The truth is that creditors often inform the consumer about increase in the interest rate or other changes in the policy through these inserts. You should make sure that you at least glance at the billing inserts that are included with your statement. If your billing statement includes the notification of your interest rate and credit limit then you should make it a point to check this every month.
Transfer Your Balance
If carrying a balance on one credit card becomes extremely expensive so much so that you cannot afford it any more you may consider transferring your balance to another credit card. This may be one of your existing credit cards that has a much lower rate of interest or a new credit card that offers a promotional rate of interest. People who have an extremely good credit score can also find a promotional rate of 0% interest. You will discover that the interest rate that you get on a new balance transfer credit card will also depend on your credit score. This means that people with a better credit score will qualify for a lower rate of interest.
Building an Emergency Fund
The main purpose of building an emergency fund is to provide you with financial resources in the case of a job loss. Loss of employment is one of the prominent and very serious effects of the meltdown in the economy. Having an emergency fund will decrease your reliance on credit to meet expenditure during the time of unemployment. This will make sure that you do not overburden yourself with more debt when you’re jobless. It will also allow you to continue to make minimum payments on your credit cards so that your credit score does not suffer during the time you are unemployed.
Take professional help But Be Careful
There is no shortage of advertisements made by organizations and businesses who claim to resolve your credit crisis by offering various services like debt settlement, credit repair etc. The reality of the situation is that many of these advertisements and businesses who are behind them are scams. They will take your money without providing you with the promised service. The bad news is that they will not do your credit situation any good while the worse news is that they may make it worse. You can take the help of legitimate non-profit credit repair organizations won’t always be careful to check the credentials carefully before putting your finance matters in their hands.
Check Your Credit Score
Find out what your credit score race before making an application for a major line of credit. The benchmark off almost all creditors for a credit score that qualifies for loan has gone up. In today’s time 720 is typically considered to be a good credit score. Get a copy of your free credit report as well as your credit score in order to see where you stand. Ordering these two documents will also provide you with many helpful tips as to what you can do to increase your credit score.