North Dakota Credit Card is Beneficial

By: EconomyWatch Content Team   Date: 3 February 2010

About The Author

EconomyWatch Content Team

The Economy Watch Content Team manages our thousands of reference pages on economic, industry,

EconomyWatch, Content Team

 

  • Dot Div
  •      

Most people think that the more credit cards they have the better, as long as the cards are properly managed but in truth, too many cards can actually damage a person’s credit history.  We wanted to show how too many North Dakota credit card accounts could actually be a bad thing and when it would make the best sense to close one or several account.

If you have two North Dakota credit card accounts in good order, then you would be fine but if you have multiple cards, what happens is that the scoring system for the three credit bureaus, TransUnion, Experian, and Equifax, start looking at the situation as you having too much financial responsibility.  They begin to see all the available credit more of a liability than something positive.  For this reason, you need to keep no more than four cards and to keep your credit score up, request two of those to keep your available credit limit at $500.

The best solution would be to maintain two, possible three New Dakota credit card accounts and make sure you use them wisely and always make more than the minimum monthly payment.  With this, the credit bureaus would view this as responsible, not to mention that you would save a tremendous amount of money in paying high interest rates.

Now, if you had two North Dakota credit card accounts, one with a balance due of $800 and the other owing $200 for a total due of $1,000.  The credit you have available on the two cards combined is $2,000.  In this case, 50% of your available credit is taken.  Credit bureaus do not look so much at the actual money owed or available but more of the percentage.  Therefore, with this scenario, credit bureaus are going to be raising an eyebrow in that 50% is at the point of possibly doing damage to your FICO score.

In this case, the goal is to pay down or off the North Dakota credit card with the highest balance.  Although it would be best to pay the card with the highest balance off in full, even getting the amount due down to $300 would make a substantial difference.  In the meantime of getting the balanced lower, you should avoid using both of your North Dakota credit card accounts.

Now, another important note is that while you want to try to pay off the balances of your cards each month, you could also hurt your credit score by never using them.  With this, the credit bureaus eventually start looking at open accounts with no activity as negative.  The best rule to follow when managing two to four accounts for a North Dakota credit card is the 60-day rule.

This means that whatever amount you charge on any card needs to be paid off in 60 days.  Additionally, if you have not made any purchases for awhile, go ahead and charge lunch, gas, or groceries, even if you do not need to and then pay the balance off when the statement comes.  That way, you maintain a high credit score but paying in full within 30 days would not cost you any interest.


  • Dot Div
  •      

Most Popular in Credit Cards : US States & Cities

Related Links
blog comments powered by Disqus