1. If you spend more than 50% of your credit limit every month, this indicates to the Credit Bureau that you do NOT have enough cash on hand to meet your monthly expenses. This will term you as a high credit risk and will actually reduce your credit score by 60 - 70 points overnight (Fair
Isaac).
2. If you miss 1 or 2 payments on your credit card debt, the issuing company will skyrocket your interest rate to a whopping 27% -
30%!
3. Out of a random sample of 3 million American consumers (included in Experian's National Score Index), 51% of them have atleast 2 credit cards and 14% of them have 10 or more credit cards.
If you would like to transfer your credit
card debt from one card to another (also known as credit
card balance transfer) but do not know how to go about
it, use the following checklist to help you make a smooth transition
without having to pay any hefty fees or interest. Firstly, get
a copy of your old credit card's most recent bill and agreement,
as well as the new credit card's agreement form. Note down the
following items:
Old
Credit Card
Toll
Free Customer Service #:
Account
#:
Principal
Balance:
Annual
Percentage Rate (APR):
Grace Period
(days):
Due Date:
New
Credit Card
Toll
Free Customer Service #:
Account
#:
Principal
Balance:
Introductory
APR:
Date Intro
APR Rate Expires:
Date Balance
Transfer APR Expires:
Fees for
Balance Transfer:
Annual
Fee:
Grace Period:
Due Date:
Credit Card Balance Transfers Checklist
Ok now you're set. Use the following checklist,
ticking each item off after completed.
Balance
Transfer Checklist
Send
minimum payment due to old company before due date.
Sign up
for the new credit card.
Complete
the balance transfer form.
While the
balance is in transfer, continue making the minimum payments
due to the old credit card.
Receive
notice of balance transfer from new credit card company.
Call old
credit card company to verify the transfer.
Receive
statement of billings from old credit card company making
sure the balance is $0.
Close the
old credit card by phoning up the company or writing to
them. Ask the credit card company to inform applicable Credit
Bureaus that this old credit card account is now settled
and closed.
