Millions of Americans are finding themselves in credit card debt and their FICO scores are plunging. Some are already facing financial ruin. Much of the problem can be attributed to the fact that people simply don’t realize how much money they are charging on their credit cards. To compound the problem, late fees and over the limit fees will continue to add to the balance.Â
One or two late payments on a credit card can put a 30-60 day late mark on your credit score that will take a full year of successful payment history to reverse the effects. Even then, it can take seven years to completely erase the negative mark.Â
Although you may only be making the minimum payment on your credit card, making that payment at least keeps your account current and in good standing. However, you are then charged a late payment for missing your due date by only one day. This fee could be the very thing that can cause your credit card balance to go over its limit, and thus incur even more fees. Your minimum payment could easily double or triple and you may then have trouble making the payment.Â
You can avoid all of these problems by learning how to control your spending by giving yourself a budget. If it’s difficult to keep track of every dollar you spend, then you should consider a prepaid credit card. A prepaid credit card can be loaded with any amount of money you choose. It’s a great way to control your spending and stay within you monthly budget.
The Green Dot card offers a smarter way to use a credit card. The Green Dot card is a prepaid credit card that will limit your spending to only what you prepay on the card. With Green Dot, there are no late fees, over the limit fees, interest or any other fee associated using a traditional credit card. The Green Dot card is simple to use. Simply purchase your Green Dot at a number of available retailers.Â Green Dot on Credit Card Hub.Â
If your credit is already bad, you can begin the credit repair process today. Throw away your credit cards and begin using a prepaid credit card such as the Green Dot card. Don’t let another day go by with the uncertainty of using credit cards. Improve your credit score beginning today and start over with your life.