It is necessary to avoid outrageous finance charges to have a good credit score. Besides this if you are a responsible cardholder also then it will also be reflected on your credit. As we are facing credit crunch so these days it has become more important for everyone to have excellent credit.

It is beneficial for you when you are looking to finance (or refinance) a home purchase. When you have good credit then you would be able to qualify for the best interest rates on both mortgages and credit cards.

Here in this article I have given you few tips with the help of which you can control your credit card debt in 2010.

1. Make all your payments on time.

If you are really willing to control your credit card debt then first thing that you should do is that you should make it your habit to pay the bills before they are due. You can use options like online bill pay and pay-by-TXT to pay your bills on time. Using these options you can eliminate the need to submit your payment early via postal mail.

Moreover, according to the new legislation (effective February 2010) credit card companies can no longer charge additional fees for making payments. This legislation will be effective from February 2010. However, expedited payments are not included in it, so still you are required to be vigilant of due dates.

2. Pay down existing balances.

If you are carrying an interest-bearing balance on your credit card and you are not making any payments then it could be harmful to your finances.

In a very short period of time your balance can go beyond your control just due to the high interest rates and compounding. For example, a balance of $1,000 having an annual rate of 20% will double in less than five years.

New Laws in accordance with CARD act

If you are willing to figure out how to properly manage your existing balance then new laws in place in accordance with the CARD Act may help you in this regard.

According to new laws it is compulsory for all credit card companies that they must have to tell you that how long it will take to pay off existing balances in case if you only make minimum payments, the total amount you will pay (including interest), and how much you are required to pay monthly if you want to pay off the balance in 36 months.

Making minimum payments is better than making no payments

Even if you have got a huge balance, then also making minimum payments is far better than not making payments at all. Moreover, if it is possible than you should try to pay more than the minimum required payment.

Now it has been stated by the Laws governing credit cards that any payments that is more than the minimum due is to be applied to the balance carrying the highest interest rate first, then to the next highest, and so on.

3. Do not keep multiple credit cards Unnecessarily.

If you are already having credit cards then there is no need to have more cards as it is not going to help, no matter how attractive the incentive bonuses are. If due to any reasons, you need another credit card then, make sure that it has a lower interest rate than the ones you already use.

You can use online credit card tables for a quick comparison of interest rates. However, before choosing one read the fine print carefully.

4. Inform your credit card company Immediately about any late payment.

If for any reasons you are not able to make your minimum payment, then you should immediately contact your credit card company and explain your situation to them. This is quite better as compared to skipping the payment altogether.

If you take an immediate action to try and work with your credit card company then this may help you sustain your credit score. Doing this you can save money in the future by qualifying you for the best interest rates on credit cards and home loans.

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