The Principles of Repaying Your Credit Cards
Repaying your credit card alone could seem like a major task all by itself, but repaying multiple at one time, might seem way too daunting to rationalize altogether.
When we, as humans, have multiple responsibilities, such as payments, we tend to carry a lot more stress and find ourselves spending way too much money than initially intended.
When you were able to apply and get accepted for getting a credit card on your name, we bet you felt accomplished, as your financial situation most certainly allowed you to obtain a credit card.
When you got accepted for that first credit card, we also bet that you didn’t anticipate that it would be as easy to say yes to having multiple credit cards, which you might have thought that you didn’t need, but it turns out that you needed a whole lot more than you ever thought you would have if you didn’t have it.
Since we, as humans, do respond impulsively to many things they may be presented with, especially when it comes to a lot of “free” money placed on one card, it’s no doubt that everyone who have multiple credit cards on their name, do require a little guidance to manage the payments that need to be made towards these cards.
Principles to help you repay multiple credit cards
- Pay a minimum amount of each of your cards
Even if it makes more sense to repay one card in complete at a time, you don’t want to miss a payment on any of your cards. If you show your credit card providers that you can manage making a payment to all of them, you will not only be able to keep their trust, but also repay your credit cards quicker, as no added interest, apart from the initial interest, will be added to the amount owed on your credit cards.
- Make payments on all past due accounts
To get all caught up on accounts you might have skipped payments on in the past, you could avoid any added interest or extra fees by repaying the amounts owed on payments you might have missed. If you’re able to pay more than required, you should, as this will leave a positive mark on your payment record.
- Aim for clear balances
When you successfully repay the amount owed on your credit card, or you make a monthly payment, don’t be urged to spend the credit obtained after making those payments, as this might result in your credit score hitting a plateau. When you keep your balances low, you are proving that you can handle credit in a responsible manner.
- Repay your credit cards and stay below the credit limit
When your credit cards go over the credit limit, it might trigger your chances of obtaining a loan in the future or being able to handle credit responsibly. If you have exceeded your credit limit, be sure to get it back down to a suitable amount.