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Why you Should Pay Off Credit Card Bills On Time

When reading about credit card tips and advices, paying your bills on time is often at the top of the list. And if you think that the reasons are quite obvious, this article will emphasize and highlight the reasons why it is important for every credit card holder to take his payment dues seriously. Why should you pay your bills on time? If you think that occasional late payments are okay, read on and be warned:

The longer you linger with debt, the more risk you put yourself in. Most credit card holders are in the habit of submitting only the minimum payment each month. But doing so means stretching your repayment period for a longer time than you’re supposed to. Of course, your credit card company is okay with it since you are being charged with the interest rate anyway. But if you think this is okay, realize that you’re putting yourself at risk of uncontrolled debt sooner or later.

You are badly hurting your credit. Not paying your debts on time damages your credit history. Timeliness of payment makes up 15% of your total credit score so even just a single late payment can make a big difference. On the opposite, paying on time greatly improves your credit score. And everyone knows that a higher credit score is a pass for better rates with lenders.

Late payments forfeit rewards and incentives. Credit cards with reward programs are very strict with their rules. You may be working hard trying to collect your points in your account but just one late payment can put all your hard-earned points to waste. Thus, not only are you disqualified from earning your rewards, you’ll also get penalized with high interest and late charges.

Late payments mean additional charges. Late payment means you’ll be charged with interest rates and late penalty fees. Imagine how much it would cost you if your credit card charges you with 15% interest plus late fee. You could have saved that amount and use it for more important expenses. Why pay these additional costs when you can save your money by paying your bills early?

Late fees could mean interest rate hikes with your other creditors. Have you heard of the “universal default” clause? If not, then you should be more concerned about late payments. Even if you’re up to date with your debts to other creditors, they can still penalized you by increasing your rates without your notice based upon your one credit card account. However, the new Credit CARD law has prohibited creditors from imposing the “universal default” clause. Still, delinquency for 60 days allow creditors and credit card companies to increase the interest rate of the borrower.

Unpaid bills cause headaches and stress. Seriously, not being able to keep up with your bills on time is a great emotional burden. As your late fees add up, you become more anxious, stressed, worried about how you can get rid of your debts. In consequence, your personal relationships are affected, your performance at work is disrupted, your peace of mind – robbed. So why put yourself through all these emotional burden when you can avoid them?

Thinking of home loans

For those that are planning to get married soon, they will not only have to think about the wedding, but they will also need to make sure that they will get to consider buying a new home. You will certainly not want to live into the same home as your mother and father are living in, as that will be a totally failure. As such, the first thing you will need to do is delve into a website that will let you in on many types of home loans.

When it comes to making a loan, this is a very important step, as you will both need to make sure that you have a stable job in order to pay it back. And that is why before you will sign anything, you will have to ensure that you will get to delve into a lot of research and make only the wisest and the best decision of them all.

As such, the majority of people when they will want to delve into getting a home loan will acquire it through mortgage. As such, this means that if there will be anything to go wrong with your mortgage, your house will be the one that will face the consequences, as it acts as a guarantee. There are some cases though in which you will not only be able to mortgage but land.

Paying mortgage is something that millions of people are accustomed to and millions of people around the world are using it. With so many banks out there though, you will have to ensure that online research will be done at 100 percent of your potential and that no good offers will be overlooked.

But you should know that it is not that easy to be let in on a loan and that you will have to supply the lender with each piece of info that you will be requested to provide. For some people though, calculating everything that is needed for this process will be a hurdle, so that is why if you want to make sure you don’t miss out on anything, you will need to use a home loans calculator.

It is thus recommended to make sure that you will delve into contacting as many lenders as you can. They each have different interest rates and you will certainly scratch your eye balls out if you will find out that you just missed out on a very good deal.