Comparing Related Financial Services - In addition to the credit card company advertisers listed below, Debtconsolidationloan.com offers a wide variety of consumer finance program listings to assist you with controlling your debts and other money management needs. Consolidate credit card bills with debt consolidation loans or use a credit counseling service for help with your getting your monthly budget under control.
- Debt Management Credit Counseling - Do you have too many monthly bills and payments to manage them effectively? Visit this directory of sites in order to review and compare different debt management programs that may be able to help.
- Settlement of Debt - If you have too many credit cards and other small debts and are unable to make your payments, this form of debt negotiation may be right for you.
- Fast Personal Loan - Looking for a personal loan to consolidate your credit cards? These loans are usually unsecured, meaning you are not required to provide collateral. Approval is often based upon factors as your income, credit and job history.
Cutting Your Costs
Simple Strategies for Saving Money on Loans and Credit Cards
2. Don't have "too many credit cards." There are good reasons to have at least two credit cards, but some people collect a stack of cards, including those from stores and oil companies, several of which they rarely use. One problem with having a lot of credit cards is that lenders look at the ones with no existing balance or a very low balance and conclude that you have the potential to use them and get into debt. Even if you've proven in the past to be a responsible user of credit, these "extra" cards could come back to haunt you the next time you apply for a mortgage or other loan.
"There is a cost to having too much credit," said Suzy Gardner, an FDIC bank examination specialist and an expert in consumer credit issues. "Although individual circumstances vary, having more credit available than what you can reasonably use, need or afford can hurt you in the long run."
Example: You have several credit cards and the combined outstanding balance on them is $15,000 below your credit limit. Then you apply for a home loan. The mortgage lender may question your ability to repay both a mortgage and $15,000 worth of new purchases on your credit cards. And, your overall credit score can suffer, resulting in the lender charging you a higher interest rate or denying the loan altogether.
One solution is to cancel the credit cards you rarely or never use, preferably well before you apply for another loan. Start by closing your newer credit card accounts — that's because your credit score can be lowered if your credit history appears shorter than it really is. Another option is to ask your card issuers to reduce your credit limit.
FDIC Consumer News is published by the Federal Deposit Insurance Corporation
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Last updated on 8/10/2007