Bankruptcy vs debt consolidation, which one is right for your current debt problems?

Credit scores - many elements can come in to making up your score. The balances you carry on them, the credit limit and the quantity of cards you have all play a part in rounding out your credit rating.

How you use your card and the buying power it represents compared to your debt is where the credit number come together in your report.

For example, if you carry three credit cards in your wallet and you designate one card for emergencies only, one you never use and the last card you use to make purchases and you pay your bills on time you should have a good credit rating.

The card you use for everyday spending should be the one with the lowest credit limit and you should pay the balance off every month. This should help build good credit and keep you spending in bounds.

Which card should be the emergency credit card? Make the emergency card the one with the medium credit limit. Do not carry the card with you and basically keep it locked up, you do not need any extra spending temptations.

The final card has the highest credit limit, no yearly fees and never gets used! Make sure the card is put away and locked up. You may even take the step and cut up the card - that will pretty much guarantee you will not use it!

As long as you keep the card open you should be able to maintain your line of credit.

Managing The Credit Cards and Credit Line

Now that your credit line is set up what is the best way of managing your line of credit.

The first thing you must do is - Be Responsible! Never max out your cards. This one item can hammer your credit score and you’ll be paying on credit cards and interest for years to come.

Try to keep the balance on your cards or I should say card one half or below your credit limit. Also make sure you make payments on time.

When making payments if you cannot pay off the balance at the end of the month try to make big payments. If you pay the minimum payment each month you pay a considerable amount in interest over time.

Never charge or purchase an item you cannot pay off in a few months. It is a good practice to always keep your balance within paying range.

If you manage the use of your credit cards wisely you can enjoy an excellent credit score and keep your debt manageable. Who wants to face consolidating their credit card debt with a loan?

About the Author:

For more on the adventures of credit card debt consolidation Visit us at http://www.everlife.com/debt-consolidation-loans.php.

Landon McGehee | Credit Card Tips |

Tags: Credit Card Tips, credit score

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