Credit Implications Associated with a No Spending Limit Credit Card

Most credit cards come with a credit limit which is usually based on several factors determined by the credit card issuer. On the other hand, with a No Preset Spending Limit Card, cardholders do not have a spending limit defined by the credit limit on their card. Instead, the limit of expenditure is decided based on payment history, income, and spending patterns. This preset limit can change, and often you can increase your limit simply by requesting it. Many people wonder if obtaining these types of cards would have an adverse impact on their credit score. Let’s take a look at the credit implications of a No Preset Spending Limit Credit Card.


Why Customers Use No Preset Spending Limit Cards

NPSL cards came onto the market several years ago as a way to give customers a type of hybrid card. They are a combination of a credit card, with a set credit limit, but the ability to pay only the minimum balance, and a charge card, which has no limit but requires that you pay the amount in full each month. Many people choose to use these types of cards for their excellent points programs, purchase protection, concierge services, and other features.


Credit Score Impact of No Preset Spending Limit Card

Many believe that NPSLs set back their credit score. However, this depends on how exactly your credit limit is reported to the various credit bureaus. Part of what determines your credit score is your credit utilization, which is the amount of your credit limit that is being used. The calculation of your credit score depends on what credit limit your issuer reported to the credit bureau. If the issuer does not report a credit limit, then the credit agency will not use this credit card account when determining your credit utilization. That being said, if the issuer instead reports the highest balance on your card, then your credit score could be negatively impacted.


Why You May Have an Issue with This Type of Card

The reason as to why some people do run into trouble with an NPSL card is the fact that card issuers are known to be extremely inconsistent in how they report this type of credit card to credit bureaus. Due to this, obtaining this kind of card does come with a certain amount of uncertainty, in that it can be hard to know for sure how and if using an NPSL card will impact your credit score.


Factors That Will Determine if Your NPSL Card Will Affect Your Credit Score

You should have nothing to worry about in regards to your credit score, as long as your NPSL’s utilization percentage, as well as the utilization percentage on your other credit cards is relatively small. If you have a charge card and not a revolving card, then your NPSL will be excluded from calculating your credit utilization by most FICO scoring models. Additionally, whether or not your NPSL card is reported as a charge or credit card, if you have a high credit amount or no credit limit then your card will also be excluded from utilization calculations.


Strategies for an NPSL Card

If your NPSL card is used for determining your credit utilization, then similar to any credit card, it’s important that you stay way below your limit or high balance. If you have a low balance, then you can deal with this by making a substantial purchase to increase it and then proceed to pay it off that same month. If your NPSL is not used in your credit utilization, then it likely is the best card to use for major purchases.


5 Surprising Perks of Using Your Credit Card for Holiday Spending

It is never a bad idea to plan early for your holiday shopping. It is the best means of avoiding the dreaded “panic shopping” that occurs at the very last minute. Holiday shopping while panicked can lead to breaking your budget, and thus holiday debt. Although many people associate credit card use with debt when properly used, it can actually help in getting all of your holiday shopping done while sticking to a budget and reaping all the rewards. Here are five surprising benefits of using a credit card for your holiday shopping.


1.  Can Help You Track Your Expenses

Make a list of the people you want to purchase gifts for and then determine how much you wish to spend on each person on that list. If you use a credit card, it can make your life a whole lot easier, as you can then track all of your expenses simply by looking online at your online accounts. There is only a small delay between the time you purchase something and when it shows up on your account online, and so checking your account when you get home from shopping can allow you to keep track of your spending and rein it in if necessary.


2.  Earn Credit Card Rewards

As long as you avoid carrying a balance to the next month when you use a credit card, using a rewards credit card to make your holiday purchases can be incredibly beneficial. Before you head to your mall or go online, read up on how your credit card’s reward program works and figure out how you can benefit the most from using it. For instance, if your credit card will give you 10 percent cash back for making purchases at Amazon then ensure that you make as many purchases as possible there.


3.  Shop With Consumer Protection

The majority of credit card issuers will protect you by giving you zero liability in the instance of fraudulent purchases. If you utilize a debit card on the other hand or if a retailer’s account is hacked, then your checking account can be drained entirely. The last thing that you want to deal with during the holiday season is a cash flow issue because you were the victim of fraud. It is a good idea to check with your credit issuer before making purchases to find out their exact policy on fraudulent purchases.


4.  Have Purchase and Warranty Protection

Besides the fraud protection that comes with most credit cards, you can also benefit from using a credit card that comes with purchase protection and warranties. Although the exact benefits and perks of a credit card vary depending on the issuer, a majority of cards these days do come with warranty and purchase protection. Using a credit card that gives you an extended warranty, means that you can do all of your holiday shopping without worrying about not being able to meet the store’s deadline for their warranty. Additionally, purchase protection will let you return an item if it is broken and get your money back guaranteed.


5.  Allows You to Take Advantage of Online Shopping Malls

These online shopping malls are also called “shopping portals” and are an excellent way to do your holiday shopping. The majority of credit card issuers have one of these online shopping malls, which allow you to gain bonus rewards when using the credit card issuer’s card. For instance, if you shop through Citi Bonus Cash Center while using a Citi credit card, you’ll see a bunch of bonuses and good deals from a variety of vendors, which will allow you to save a substantial amount while also earning rewards.


The Advantages of Using Your Credit Card Alert Feature

Today it is very common for a person’s information to be stolen.  Usually you find out about suspicious activity weeks after it happens, leaving a big mess that can take years to fix.  In the middle of this mess you may wonder what could have been done differently in order to prevent this credit catastrophe.  The truth is there isn’t one foolproof plan that will prevent your information from being possibly stolen.  Therefore, looking into measures that can help alleviate a credit theft episode will be well worth it.  Having an institution observing your credit is not just a response to something negative.  Some creditors provide offers to remind you of payments, benefits you have to spend, and notifications regarding their credit limits.


While other companies can tell you about promotions, balance transfers, and cash rewards, you can be kept in the loop about your finances with credit card alerts.  These alerts are meant to keep you organized and safe.  How does having a credit card alert feature help? One way that alert features can help is by safeguarding against cyber security attacks.  Alerting credit card holders immediately when new credit accounts have been opened in your name is a major asset, allowing you to put a stop to the fraud immediately.


Discovering the Benefits

In addition to being able to know when new accounts have been opened without your authorization, credit card companies can let you know about strange purchases that our outside of your normal spending. Sometimes this means that you are going to be alerted about your own purchases, when they are extraordinary, but it is better to be safe than sorry.


Learn about Payments Due

You can receive notifications when payments are due on your loans to prevent late payments.  If payments are not made when they are due, it can cost you in late fees, greatly increasing your balance.  You can establish a weekly or daily balance alert to make sure you do not fall behind.


Know your Balance

You can also create a notice around your spending limit in order to ensure that you don’t accrue any other fees, such as going over you credit limit.  Rather than finding out when your statement comes and you are hit with high fees, set up alerts to inform you when you are getting close. You can even set it up so that you get a text from a creditor so that you know while you are out and about that you are close to your limit.


A Helpful Tool

Understanding the importance of credit is one of the first steps to maintaining and protecting it.  Credit monitoring, credit card alerts, and credit reports are just a few tools that are apart of the business.  These tools are used within the credit system to inform you on account activities.  As you use your credit cards for goods and services, the system itself reports to three bureaus.  Information on your payment history, loans, and mortgages are used to create your credit score.  Keeping an eye on your accounts is the best way to ensure a healthy credit report.  Beyond the relevance, credit card alert features are set in place to aid in your services.


Some of the main benefits of alerting consumers with credit card features protects identities and saves money.  Creditors have custom alerts that some customers don’t know about or don’t use.  Monitoring systems can be set up to notify you when your credit history changes.  Knowing what your specific features entail from the creditors answers the question on how credit alerts can help you.  A consistent alerting system can resolve issues before they turn into problems.


Does Adding an Authorized User Build their Credit?

Having a son, daughter, spouse or other loved one become an authorized user of your account in order to boost their credit score is one of the most common strategies out there. It will help build up their credit score from scratch or repair it if it’s damaged. The authorized user strategy is a great one to use for both scenarios as long as it’s used correctly.


How Authorized Users Work

One person’s name, for instance, your son or daughter, will be added to an existing credit card account that belongs to you. However, this does not make you a joint cardholder or a co-signer. Instead, you’ve simply added a user who has access to your account. After doing so, you should receive a card in the mail with the authorized user’s name on it. Once the card has been activated, your son or daughter will be given as much access as you to the card.


The Payment Liability of The Authorized User

Authorized users cannot be held liable for the balance or charges that are made on the account. This means that they will never be asked to repay the credit card; instead the full responsibility rests on you as the primary cardholder, as well as anyone else who is obligated on the account.


Credit Reports of Authorized Users

After several months of using a credit card as an authorized user, the credit history that is associated with the account will be added to his or her credit reports. Although this is usually the case, take into consideration the fact that it does not always happen with every credit card. It’s recommended that you check with the credit card issuer beforehand in order to ensure that their credit reporting practices will benefit an authorized user.


Credit Scores of Authorized Users

When the account is added to an authorized user’s credit report, it will immediately be taken into consideration by credit scoring systems. It will have as much weight as any other type of credit card, and won’t be dinged for being an authorized user account. However, there is an exemption for FICO’s new scoring models, which will take into consideration whether someone is just trying to beat the system by piggybacking off of someone else’s account.


FICO’s Logic With Anti-Piggybacking

FICO does not disclose any details on how they score, however many people think that they’ve been able to figure out when someone is simply being added on to a credit card account to help their credit score without any sort of legitimate relationship between those two consumers. Due to this, the authorized user typically has to be a close relative in order to gain benefits.


Authorized User’s Responsibility

When you add someone to your account as an authorized user, they are able to make purchases on your account. It is completely your responsibility to ensure that they pay for the expenses that they incur. This may be achieved by asking that they pay you directly, or by giving them online access so that they can make payments themselves. However, they are not legally liable for the payments—you are.



For Best Results

Make sure that the authorized user on your account uses this strategy in order to establish their credit, at which time they should then establish their own account in their name. Bear in mind that some lenders will want to see that they can repay credit cards on their own before they’ll give them their own line of credit, which means that the authorized user strategy may not me viable. Once again, it’s important that you check with the credit card company beforehand to ensure that this isn’t the case.


Decoding Credit Card Offers Using The Schumer Box

The Schumer Box was coined after Charles E. Schumer, the government official who aided in passing legislation in 1987 in order to shield consumers from out of line credit card practices. The Schumer box is composed of standardized disclosures that are clear and relevant for people to read and fully understand. It is required that they be on all financial records and incorporated into interest rates, terms and conditions, rate calculation and annual fees. With this available data, shoppers have the knowledge necessary in order to look into rates and terms from all credit card offers before they determine the one that best addresses their needs. The Schumer box allows users to avoid having to scour through fine print to locate concealed charges of an offer.


What the Schumer Box Has to Offer

Whether you’re trying to find a business card, better rate, new card or your first card, comparing various offers is much simpler with all the major details clearly laid out in a collective format. The law states that all rates must be disclosed in 12 to 18-point type. The box must be in a table with two columns that provide an outline of exactly what the terms are along with the fees and rates that go along with it.


How to Use the Schumer Box

It is advisable to use the Schumer Box in order to aid you in making the right decision about which credit card to use for your financial situation. Owing to all credit card providers having to utilize the same format, as well as provide the same information, you will easily be able to compare them in order to find the offer that provides you the most benefits. When you are evaluating which credit card offer to go with, be careful to look at all the information that the box provides, such as promotional APRs and the introductory length.


Example of What The Schumer Box Contains: 


APR For Purchases

The Schumer Box must contain the introductory rate and how long the rate will last. On top of this, it must list the regular interest rate and whether or not the rate is variable or fixed. You will be able to see three varying possibilities for the introductory rates that depend on your particular credit score. If you have an exceptional score then your rate will be much lower than if your credit is sub par.


Grace Period

The Schumer Box will also contain information pertaining to a grace period. Many credit cards will offer consumers a grace period between 20 to 30 days at which time interest will not be charged if the balance is paid fully by the due date. If you’re carrying a balance, however then there often won’t be a grace period. The Schumer box will also contain a concise explanation of how you avoid interest payments.



Don’t Skimp On the Fine Print

It’s imperative that you don’t skim over the fine print because you’re now provided The Schumer Box as it contains critical information as well. For instance, all information about the rewards that credit cards provide is not included on the Schumer Box. On top of this, benefits for being a card member, such as extended warranty coverage and rental car collision will also not be listed on the Schumer Box. Due to this, reading the fine print is important in order to gain a better understanding of all the very critical information pertaining to credit card deals. You will typically be able to find all information out by reading the pages that are included in the marketing materials.



How to Rent Your First Apartment with no Credit or Cosigner

As students receive their diplomas and a handshake welcoming them into the real world, the dilemma of where to live after college befalls many. The majority of recent grads do not want to resort to living in their parent’s houses after graduation, but in order to live on their own they must get approved for a house or apartment. Having a solid credit history is important for many reasons including cell phone contracts, credit accounts as well as renting an apartment. However, if you are a recent grad without a solid credit history all is not lost.


Rent Your Apartment from an Owner


The majority of management companies and apartment complexes need a credit check to approve you in order to rent their property. That being said, there are some individual owners that will take on renters without an established credit score. In most cases, a landlord will only require that you to prove that you have income stability. Make sure that you only rent an apartment if it’s within your budget, no matter how expensive a place you can get approved for.


Offer To Immediately Move In


Not being able to fill apartments is very expensive for landlords, as they then have to take on the utilities and mortgage without being reimbursed through rent. Due to this, you may be able to rent out an apartment without established credit if you can move in right away, as this will give you an edge over other renters who may have to fulfill out a current lease or need time to save for a deposit.


Prove That You Have an Income or Savings


If you don’t have a credit history, you may still be approved if you have a steady income that will adequately pay for rent. It is recommended that you don’t rent an apartment that is more than a third of your pay after taxes. This means that if you are making $3000 dollars a month, you need to look at an apartment that costs less than $1000. If you are not steadily making an income, but still have a substantial amount of savings then this may suffice in allowing you to rent an apartment. The amount of savings that you need will vary depending on the management company or apartment complex, however it is ideal to have at least a few months of rent saved up.


Pay a Couple of Months of Rent Upfront


Paying two or three months of rent upfront may persuade a landlord to allow you to rent an apartment without a credit check. This is because paying a few months’ rent ahead of time will decrease your landlord’s risk of you not being able to pay later down the line. Ensure that the payment you make is documented properly so that there are no misunderstandings.


Give Reference Letters


Keep in mind that your potential landlord has no idea who you are. By giving them some idea that you are a good person and not a liability, you may be able to rent an apartment without a credit check. In order to do this, giving the landlord a few professional references from professors or employers is a good idea. It is generally assumed that if you are responsible at school and work you are responsible with your money, which you can use to your advantage. Providing character references is a way to demonstrate that you are responsible, hard-working and someone who will pay rent on time every time.


Offer to Begin Month-to-Month


If a tenant doesn’t pay rent, it can take a landlord several months to evict them if they refuse to leave. By making a deal with the landlord that you lease month-to-month or for three months at a time, it will give the landlord the option to not renew your lease for another term if you aren’t able to pay. Of course, the assumption is you will be able to pay the rent on time. However, your landlord does not know this, and so you have to prove that you are trustworthy by keeping a good track record.

5 Reasons to Use Your Credit Card for Everything

Were you aware that many experts believe that you are actually better of utilizing a credit card, instead of a debit card in order to make every day purchases? Don’t be confused, it is extremely important that you only make purchases that you can afford to pay back right away, and that you’re able to pay off your credit card bill every month. However, as long as you ensure these things then using a credit card instead of a debit card or cash is recommended. Here are five reasons as to why you should choose your credit card in order to make all of your purchases.


1.  Great Fraud Protection

In the case that your credit card is taken and used, federal law will provide you with the biggest overall protection if you are using a credit card. The Federal Trade Commission mandates that you will only be held liable for $50 of fraudulent charges made with credit cards, however most companies won’t even hold you liable for that. Debit cards, on the other hand, are more dangerous when they get into the wrong hands due to the fact that funds can be immediately taken out of your account, and the FTC can hold you reliable for $500 of any stolen amount.


2.  Helps You Build Up Your Credit History

Most people know that the more they use their credit card properly by paying off their bill each month, the better their credit rating will be. However, not everyone is aware that this can allow him or her to get a car loan or mortgage with lower interest rates. By using your credit card responsibly, you can work to greatly increase your credit score, which will allow you to gain access to the best interest rates on the market.


3.  Avoid Fees 

Using your debit card can cause a number of fees to be charged on your account. For instance, you may be charged a hefty overdraft charge if there isn’t enough money on your account to cover your transaction, or you may be subject to a swipe fee for any transaction that you make. On the other hand, there are plenty of credit cards on the market like the Discover card that will offer their customers a 0% APR for the first six months of use, which means that you won’t be charged any interest, even if you’re unable to pay off your bill in full. On top of this, there are many credit cards that don’t have fees in order to use them.


4.  Earn Great Rewards

If the reason as to why you avoid credit cards is because you want to avoid falling into debt then you are not benefiting yourself. It is true that staying out of debt is extremely important, however you can still ensure that you do this while still fully utilizing a credit card and maximizing your reward potential. There are many credit cards out there that have amazing rewards like free hotel stays, cash back and free air travel and so using one properly can be a great advantage to you.


5.  It’s Great for Spending Reports and Accounting

If you avoid using cash or making any purchases on your debit card, you can ensure that your monthly spending is all bundled into a single report in the form of your credit card statement, which can make things very simple when you’re managing your finances. On top of this, there are many credit cards out there that will help you organize your finances by categorizing your spending habits so that you simply have to glance at your report in order to see where all your money is going.


Alternative Options to a Securing a Personal Cosigner

Perhaps you need a car loan in order to get to work, and although you know you’ll be able to make all the payments, you don’t have enough of an income or your credit score is too low in order to obtain one. Or perhaps you want to rent an apartment right out of college, but don’t have a steady income yet. A co-signer can solve any problem you have with getting a loan or lease. That being said, it’s reasonable that you don’t want to compromise your loved one by asking him or her to co-sign. Otherwise, you may simply not be able to find anyone whose willing to co-sign for you. Whatever the reason, there are some alternatives to finding a co-signer that will allow you to still obtain a loan or lease without asking anyone to co-sign for you.


Become a Roommate or Subtenant 

If you are attempting to lease an apartment then you should consider finding a rent situation in which there is a person who is obligated to pay the rent, but is searching for someone to help them pay it. For example, you may be able to sublease an apartment from someone who had to move unexpectedly or who is traveling for a certain period of time. Ensure that you ask the person you are subletting a room with to give you a copy of the lease in order to ensure that you aren’t violating the contract by them allowing you to move in.


Utilize a Co-Signer Service

In order to obtain a loan or secure an apartment, you have the option of using a co-signer service. If you’re willing to pay a fee, a third party will guarantee to a lender or a landlord that they will repay your loan or your rent if you’re unable to do so on time. However, keep in mind that you must be approved by the co-signer service, and that the fee will be a certain percentage of your rent or loan, and typically is a nonrefundable, one-time fee.


Use a Lending Club or Prosper

If you need to borrow a sum of money and no traditional lender is willing to lend to you, then looking into peer-to-peer lending may be a better option. The two biggest companies that allow for peer-to-peer lending are Lending Club and Prosper. Both of these companies will look at your credit score when applying, however they don’t require that you have a perfect score. Additionally, you can use the money that you borrow for any purpose. The lower your credit score, the higher your interest rate will be, and there’s a chance you may not be accepted. However, it’s worth trying to apply in order to find out.


Rebuild or Establish Your Credit Score

Lenders will require you to have a co-signer if you have a damaged credit score or no score at all. However, you can work to re-establish a good credit report by using a secured credit card that will increase your credit score the more you properly use it. All you have to do is make a few purchases every month on the credit card and then repay it before your credit card bill is due. If your issue is that you don’t have established credit then know that within six months of starting to use your secured credit card, you will meet two criteria for having a great credit score—history of on time payment and low credit utilization ratio.


The Bottom Line

It is extremely frustrating to not be able to take out a loan or rent without a co-signer, however keep in mind that doing these things is a privilege not a right, and landlords and lenders must look at your financial history for their financial safety. If you’re unable to obtain a co-signer, or don’t want to use one then remember that you have other options.


No Credit History? New Scoring Method for the Underserved

Credit scores have played an increasingly vital role in the lives of U.S. consumers. They aren’t just used in order to determine if someone is credit-worthy, but also the price that they can obtain credit. In addition, credit scores can influence someone’s ability to rent an apartment, the price of their insurance and even affect the hiring decisions of future employers. Unfortunately, there are millions of people who do not have any credit history, or only very little credit history or have a terrible credit history that prevents them from many financial services. This is changing in recent days, as there has been a search for an alternative to the traditional FICO score for the 20% of the U.S. population who do not have any credit. Between 50 and 80 million people only have limited access to capital and credit due to the fact that they have non-existent or thin credit history, and so this new credit score may help them tremendously.


The Difficulty of Not Having Credit

Without having a credit history or score, lenders are forced to process a credit application in the old fashioned way, which is extremely time consuming and expensive. Every application must have various documents like copies of utilities and rent payments, as well as employment history verification. Even if someone with no or little credit has their application approved, they usually must pay a much higher interest rate due to the fact that lenders consider them more of a credit risk.


Alternative FICO Score

The Federal Trade Commission is investigating as to whether or not there are any common financial transactions that aren’t typically reported on credit histories that could actually give useful information to the main consumer reporting agencies in regards to determining a person’s credit rating. They’ve concluded that peoples’ utility payment history could provide useful data. The alternative FICO score idea is that those vendors who are doing business that involves recurring payments may help supply the payment history in order to fill in the files that are thin or non-existent so that they can become viable credit histories.


Credit Files Will be Balanced

Many advocates think of this strategy as a means of balancing out someone’s credit file with a positive payment history that will build someone’s thin credit history, as well as take some of the weight off of negative credit data. For instance, a utility company typically won’t report an entire payment history to credit bureaus, however they will refer any collection issues to agencies who will report all of the negative information. This means that when a utility customer that doesn’t pay his or her bill possesses very little credit and is referred to a collection agency then the customer’s credit report will contain their nonpayment from that collection company. However, it will not be balanced by the person’s positive history of making payments. By balancing negative data with a positive payment history creditors can gain a more accurate idea of a person’s capacity to take on credit, and improve their basis for estimating credit risk.


Opportunity Given By Alternative Credit Score

Allowing for alternative data sources to be used in order to created an expanded score will offer a great opportunity for smaller businesses to focus more of their attention on the segment of the market that is underserved. This market is emerging as a great economic driver for credit data alternatives due to both their size and cultural characteristics. The credit market that is underserved largely consists of a growing Asian and Hispanic immigrant population, as well as long established communities of senior citizens and other cultures. It also includes those who are just entering into the work force, and those who are newly divorced. Allowing for alternative data to be used in credit sores will aid lenders in removing the guesswork of working with the population who is credit underserved.


5 Benefits of Paying your Credit Card Bill Before Due Date

There are plenty of good reasons as to why you should never be late on paying your credit card bills. However, there are also some compelling reasons as to why you should consider paying them early. Although it may seem to go against common sense to turn in your credit card payments before the due date, it is actually a very smart idea to pay your credit card bills early. Here are five very good reasons to pay your credit card bills early every month.


Save Money on Interest

Carrying a balance on your credit card account means that you’ll accumulate interest charges every day depending on your daily balance. When you make a payment on your credit card before it’s due then you are lowering your daily balance, which will then reduce the interest you’ll be charged by a significant amount. You can also think of it as the fact that because you are earning only a very small amount of interest by letting your money rest in a savings or checking account, but are paying more for letting high-interest credit card debt remain on your credit card account then you can save money by making credit card payments as soon as possible. If you want to know exactly how long it will take to pay off your credit card balance then go online to find a credit card debt calculator.


Increase Your Credit Score

When the statement period ends on your credit card, and the statement is issued then the balance will be reported to all of the major credit reporting agencies as open debt. This is still the case even if you are able to avoid paying interest on your debt by paying the amount in full on the due date. The debt that’s reported will lower your credit score if you have a high balance during the month. By paying off all of your balance, or at least some of it, before the statement cycle closes then you will reduce your debt-to-credit ratio and thus increase your credit score. This can be a huge factor if you are attempting to apply for another line of credit or for a home mortgage.


Pay Down Your Debt Sooner

By making early payments on your credit card you are putting your funds to good use by committing them to pay off your debt instead of just planning on paying it off at a later date. This means that your debt will be completely paid of sooner, and the funds that would have otherwise been available to you to use for discretionary expenditures will be unavailable to you and so you won’t spend it on unnecessary items. This will allow you to save money.


Free Your Line of Credit

If you are anticipating the need to make a rather large purchase then this can cause you to use up your entire line of credit before the payment on it is even due. This can be especially the case if you are looking at a standard statement period of around 30 days long, as well as the grace period, which is the time between when the statement closes and when the payment is due, which can be between 21 to 25 days long.


Can Mess With Travel Holds by Car and Hotel Agencies

If you have any plans to travel in the near future then you may find that rental car agencies or hotels will put a hold on your account. This will cause even less of your credit line to be available, as it will take up a substantial amount of your available credit. By ensuring that your debt to credit ratio is low, you’ll make sure that you have enough free credit for these agencies to put a hold on your account without causing all of your available credit to be used up. This will ensure that any charges you make will be approved so that your traveling goes smoothly.


When You Shouldn’t Pay Your Bills Early

While there are several good reasons why you should pay your bills early every month, there are some cases in which you shouldn’t do so as it will not be beneficial to your financial situation. If you always avoid paying interest by paying down your credit card in full each month, and you don’t utilize a substantial amount of your credit line then waiting until your due date in order to make a credit card payment can actually be ideal as there won’t be any repercussions for not doing so. This is because you won’t be saving any money by not getting charged interest from paying down your bill early, and additionally you will be able to keep your funds in your bank account for as long as possible



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