We at Fraser Valley Rent 2 Own enter the Christmas season with gratitude for the many whom we have connected with over the last year. That includes YOU. We salute action-takers, and by joining our blog, you have taken action. It could be the first step toward eventually owning your own home.
A Christmas financial tip
This is a time of year when so many people’s financial status takes a real hit. Christmas costs add up and the credit card gets stretched. Then comes January, and the payoff becomes impossible. Not only do the interest costs on the card–as high as 18-20%–take their toll, but a missed payment whacks a person’s credit score. The credit gains one has made through the year are lost in one fell swoop. “Oh well, next year,” we’re tempted to say.
Don’t fall to that temptation! Ideally, you should pay off your credit card fully every month and avoid the high interest charges. But if you can’t, all is not lost! Even if you can’t pay much, (here’s the tip) Always pay the minimum amount due (which is usually only about 5%, depending on the terms of your particular card). Even paying just the minimum avoids the credit score whack that comes with paying nothing. Beg and borrow if you have to (but don’t steal), but pay that minimum, (because borrowing from your dad doesn’t affect your credit score)!
Okay, I promised one tip, but here’s a second tip. (How’s that for a Christmas bonus?) Keep your credit card balance no higher than half the credit available. Your credit score will go down if you carry a card balance approaching your credit limit. So, if you have two credit cards–and I’m not advocating getting a second just to add to your credit woes— you’re better off filling them each half full than filling one up and leaving the other empty.
So there you have it—2 Christmas credit tips for the price of one—FREE.
At Fraser Valley Rent 2 Own, we are dedicated to increasing the financial literacy of renters who would one day like to become home owners. Even if you don’t end up going through our program, we are delighted if we can help you on your way to your goal.
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Have a wonderful holiday season, whatever it means to you, and however you celebrate it in your tradition!