There are some fraudsters claiming to provide the best credit repair services. And, there are some legitimate teams of experts actually providing the best credit repair services. While credit repair services reviews are pretty helpful in finding genuine and reliable helping hands. Why land in such a troubling situation in the first place? Why let your credit score tumble over?
Your credit card is one of the factors having an effect on your credit score. In this article, you will learn whether you have too many credit cards or you have not crossed your limits.
You are unable to pay on time
You have missed payments and you have lost track of due dates, it’s a red flag. You have too many credit cards. If you are paying late occasionally then it is not going to cause any long-term damage to your credit file. Your late payments will be reported to credit bureaus only when you are late by 30 days. You will also have to pay a late fee. You will have to pay an interest fee as well if you are past the grace period. So, if you are unable to pay on time, you have too many credit cards.
You are unable to pay in full
It is a sign of an overabundance of credit cards if you are unable to pay all of your balances at the end of the month. You can carry a balance in your credit cards. However, you will have to pay interest fees. You can avoid interest fee by clearing off your balances before the grace period ends.
If you are falling short in paying the minimum required payment, evaluate your financial state. It’s time to consolidate credit card debt with a personal loan or a balance transfer. It is also the time to reduce the number of credit cards you are carrying.
Your Wallet is Full
If you find your wallet full to bursting, audit the collection of your credit cards. If you look into the credit card market, there is an abundance of credit cards. Credit card companies frequently change their offers. The purchase rewards and benefits you are receiving may be overlapping. Apart from that, your spending needs and habits also change with time. So, a credit card that is ideal for you this year, may not be the right for you next year. Make sure that your credit card is worth carrying around. See if there is a better card on the market which can replace one or two your existing credit cards.
Your applications for credit cards are being rejected
The way you are managing your loans and credit cards, it is reflected in your credit report. Lenders and credit card issuers check your credit report while processing your loan or credit card application. If you have too many credit cards opened in a short period of time, it’s a bad sign. Moreover, credit card issuers want loyal customers. If you are a one-and-done customer, you are not making money for the company. So, you may not be welcomed.