Credit is very powerful, as you know and when used correctly, it can become an asset to your life. The benefits of good credit is that you get to enjoy a low APR (annual percentage rate). A low APR credit card can save you thousands of dollars in interest charges in a years time.
So let's say your credit score is fair high, roughly 780. Creditors are going to charge you a lower interest rate than if your credit score is only 575. What are you looking for?
Only use 30% or less of your total balance. If you want your credit score to really soar, try reducing the balance to only 10%. Carrying a lower balance means you are more trustworthy, which makes creditors reward you with a lower interest rate.
If you have more than 30% of the balance used, always pay more than the minimum monthly payment. I know it's common sense but paying more brings the balance quicker, which, works to increase your credit score.
It really is a simple circle. Understanding credit and learning how to play by the rules will crown you as a competent winner. By disregarding the basic rules, you will overspend thousands more for the same items. Getting your credit together is definitely the first step to applying for and getting low APR credit cards.
Next, another super easy thing to do is to get a copy of your credit report. Make sure everything is accurate. If you do happen to run across a discrepancy or two, there are do it yourself credit repair letters that you can send to the credit bureau for them to investigate. If there are errors, you can have those removed off of your credit report.
The process of repairing your credit is just that, a process. We all want the high score for all the benefits it holds. But, we also need to remember things may take longer than we desire. The key is to just stay consistent doing the things stated in this article. Consistency is boring, I will admit. However, when it comes to increasing your credit score, this is one discipline you must adopt.
A low APR credit card is very desirable because of all the money you save in interest charges. Keep your balances low. This will show creditors you are trustworthy. Always pay more than the minimum monthly payment. And although one of the best things you can do is fight any errors found on your credit report. As I said, boring, yes. But consistency is the key to success when increasing your credit score.