THE TEN COMMANDMENTS OF CREDIT CARDS: #4

by Don Rose, Writer, Life Alert

Rule 4. Pay more than the minimum payment each month.

There are at least two good reasons for doing this. First, you will pay down the debt faster the more you pay each month, meaning you will ultimately pay less in total interest. Second, it looks better to the credit card company (and the credit reporting agencies) if you pay more than the minimum. Paying just the minimum sends the signal that you are barely scraping by, and hence not as good a credit risk, which can in some cases result in the card company raising your annual interest rate or lowering your credit limit (or both).

THE TEN COMMANDMENTS OF CREDIT CARDS: #3

by Don Rose, Writer, Life Alert

Rule 3. Pay bills on time to avoid fees, credit report damage, and other penalties.

Typical late fees range from $29 to $39, and if you are over 30 days late many credit card companies will report you to one or more of the big three credit reporting agencies. Another negative of being late: the credit card company can impose other restrictions, like raising your annual APR (interest rate) as a penalty for lateness. Strive to pay your minimum payment (preferably more) at least a week before the due date; this will cause less stress, thanks to the one week time cushion for your payment to reach its destination.