Biz Tip of The Day: Always Make Monthly Credit Card Payment More Than The Minimum
Biz Tip of The Day: Always and always make the monthly credit card payment more than the minimum amount payable. Did you know that when you make a minimum payment, all of the payment probably goes to your lowest fee, or interest rated charge? Each card company has its own policy about minimum payments. You would have to check with your to find out what their particular policy is.
Over minimum payments are governed by the CARD Act. When your payment is more than the minimum payment, the excess over the minimum payment goes toward the highest interest rated charges on your card, such as cash advancements. If your monthly minimum payment required is $50.00, and you pay $150.00, then $100.00 will be applied to the balance of your highest interest rated item (The minimum is usually applied toward your lowest interest item).
The point is, you want more money to go toward the higher rated items on your account to get rid of them as quickly as possible to keep them from mushrooming month to month. Good to know. But, the very best thing you can do is to pay your monthly credit card bill on time, in full, each and every month.
Success by Design, Not by Chance
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