Credit cards offer convenience to the consumer, but usually at a price. Having a credit card comes with certain responsibilities on the part of the cardholder. Many people simply pay their monthly minimum charge and pay no attention to the debt they are building. There are certain factors that can have a cardholder spiraling into lifelong debt if they are not carefully monitored and controlled. What are these factors? How can the holder of a credit card control how much debt they acquire? How do they monitor their credit card data? The first and most important area to consider is credit card data.
Credit Card Data
- The Statement Balance is what the cardholder owes and what they will have to pay. This is the sum on which interest will be calculated. Being able to monitor this allows the cardholder to keep track of their spending and their debt. Why it is important to monitor this: This data allows the cardholder to plan their payments and curtail pending if necessary.
- The credit limit on a card is the amount that the cardholder is allowed to spend with a particular card. It is also known as a “credit line”, and how much of it is used directly affect the cardholder’s credit score. Ideally, the cardholder will want to utilize as little of their credit limit as possible in order to build credit. Spending more than the credit limit will result in fees as well as negatively affecting credit score. As a result, it is advisable for the cardholder to keep their credit card balance in the area of 30 percent of their credit limit. Why it is important to monitor this: Being able to keep track of the credit limit on a card enables a holder to avoid spending too much.
- The Annual Percentage rate (APR) is often used as an easy way for consumers to compare different cards. The APR is the amount of interest and fees charged yearly on an unpaid credit card balance. Since it is compounded monthly, it determines how fast the cardholder’s debt will grow. Credit cards with a high APR can result in debt that take years to pay off, therefore a lower APR is more desirable, for example, Discover More cards offers 0% for 15 months. APRs decrease as a person’s credit rating goes up, which will happen if the cardholder pays their debts on time. Why it is important to monitor this: Monitoring the APR on a card will allow the cardholder to track how much they are paying in interest and fees and to keep an eye on the health of their credit as well.
- Interest rates are one of the most important factors in controlling credit card debt. There is usually a grace period before the cardholder will be charged any interest on their balance. After the grace period, whatever is owed will gain interest. Why it is important to monitor this: How much interest a cardholder is paying for the loan is important factor in how much a cardholder will end up paying altogether.
Benefits of Using Pageonce
It is often difficult to keep track of all the different factors that affect an individual’s credit card debt. Pageonce is the only service that provides all of the important information in one place.
Once a cardholder’s account has been connected to Pageonce, they will able to see all of their credit card data; this will allow them to keep track of their money and control their debt. They also provide mobile apps so that cardholders can monitor their finances while on the go. The app is available for all the major mobile operating systems.