Thursday, August 25, 2016
Efficient Credit Card Debt Management to Boost Credit Scores
Based in Wheaton, Illinois, Tim Salvesen is the vice president of GridLiance. Previously an audit senior manager at KPMG LLP, Tim Salvesen is a member of the American Institute of Certified Public Accountants (AICPA).
AICPA runs the Feed the Pig program that aims at educating Americans on proper saving and debt management practices, including how to improve one’s credit score.
Efficient credit card debt management is one way of improving your credit score. Start with paying your monthly credit card bills on time. Setting up automatic payments is a full-proof way of ensuring you never miss a payment date.
When making these monthly credit card payments, try to pay above the minimum bill as this reduces delinquency and improves your overall credit score. Strive to reduce credit that is close to your limit as this has a bigger impact on your credit score. A good rule of thumb is to always start by paying off cards with higher interest.
Plan your credit card usage strategically. Opening and closing several cards in one year can hurt your credit score. It is more prudent to have two cards you use in a month and repay the next month.