Would this work out on bringing down my credit debt as well as improving my credit score?
I have a Credit Card through my bank. So I am able to do a balance transfer from my checking account into my credit account for payments. My APR is 25.00% very high. Would it be okay if I paid 10 or 15 dollars a day? Instead of paying a weekly amount. I figured I could budget easier by paying daily.
Karl
Comments
Comment from shalirha
Time October 20, 2009 at 9:08 am
I AM NOT SURE, BUT IT SURE AS HEL* SOUNDS LIKE A GOOD PLAN. I THINK I WILL TRY IT OUT. AT THE END OF THE MONTH I WOULD HAVE A PAYMENT OF CLOSE TO 300 INTEAD OF MY USUAL MIN. OF LIKE 35 BUCK.
ITSTEAD OF SPENDING MY MONEY EATING OUT AND SHI* I’LL JUST THROUGH IT ON A BILL-
Comment from nellbell55420
Time October 20, 2009 at 5:59 pm
All you really need to do is pay more the the minimum balance. Just make sure you keep a balance on your card. You want to prove that you have and can handle credit. Just keep it under 30% of your credit limit and you should be fine.
Also, there is a certain day each month were your card is charged a finance charge. If you charge an item to your account and pay it off before that date, you will not receive a finance charge for that item. Basically the finance charge is based on the balance you have on your card. The finance charge is based on your APR. The lower the balance the less you are charged.
So long answer to your question, yes. It will help lower your debt and improve your credit.
Comment from wanderer9782
Time October 23, 2009 at 2:03 am
Since credit card interest is based upon the DAILY BALANCE on your account paying $10 a day as opposed to $70 a week will, in fact, lower the amount of interest you will pay.
Comment from Studly
Time October 24, 2009 at 8:25 pm
I read an article that said doing it that way will save you interest money…but not sure how it will look on your credit score.
Why aren’t you searching for a new card with a lower interest rate? Give your CC a call and demand that they lower it or you will take your business somewhere else.
Comment from VinTek
Time October 26, 2009 at 5:02 am
Yes it would be okay if you transferred money every day, and it would bring down the total amount of interest you’d pay. But it wouldn’t affect your credit score at all. Just make sure that you’ve paid at least the minimum due on the due date each month.
Also, 25% is pretty high. You might want to give your bank a call and negotiate a lower rate. If they won’t go for it, you might want to consider a balance transfer to another card with a low introductory rate. Make sure that you read the fine print. There’s sometimes a charge to make a balance transfer and if you haven’t paid off the card after the intro rate is over, it zooms back up.
If you want details on what to look for, click on my name and send me a note; we can try to figure out if this is a worthwhile option for you.
Comment from pianist
Time October 18, 2009 at 6:44 am
cut your credit card and that would help you maintain your good standing.