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If You Know You’re Going To Die, What’s Stopping You From Maxing Out Your Credit Card

By February 7, 2021 No Comments

This topic could be immensely helpful for all those who wonder what credit card maxing is and what would happen if your credit card gets maxed?

Answer to all your questions will lie in this particular topic. Before that you need to understand what credit card maxing is and what could go wrong if you max it or misuse it. All those who are moving ahead with getting their own credit cards, this topic could be very useful to you for the fact that you would know the pros, cons and perks of keeping a card on you. Nothing comes easy in this world. And even though the thought of having a credit card would definitely mesmerise you at first but trust us that it too does come with many negatives. This definitely doesn’t mean that you font pursue in getting yourself a credit card. The purpose of this information is to help you guide in terms of credit card holing. How you can manage your score and how you can save yourself from maxing out your credit card.

What Is A Credit Card?

A credit card is a card that is issued to an individual with a certain limit based on the card holder’s promise to the card issuer to pay them for the amounts plus the other agreed charges. The credit card is issued by a bank or a financial services company. It allows you to make purchases by borrowing money but up to a certain limit only. If you by any means exceed the limit and mange to spend more than that, you are in debt and you need to return that money. So basically credit card is not something you can enjoy without worrying. The consequences are there if in case you fail to live up to the credit card holding criteria. That is, if you don’t return the money back to the financial organisation or the bank or if you exceed the money limit on your credit card.

This is true that credit cards are of different types. All have different price limits and it all depends on you as to which credit card you want to get. It is you who has to return the amount back to the bank, so you have to decide accordingly as to what kind of credit card you want.

Credit card should be kept and issued only for things that are important. You should get a credit card only if you think you need one. If you think you need to get something that you can’t afford right away but later on you can return all the money back. This is the reason why credit cards are issued and made. The most convenient thing about credit cards is that you can return all the money in installments. Provided that you di return all the money. The bank also gives a time period during which you have to pay them back. If you fail to do so, you’re in a debt and obviously there is going to be legal action as well.

Credit Card Maxing

The most important thing that credit card holders need to understand is the credit card maxing and it’s consequences. It happens many times that we tend to get ourselves credit cards but we don’t understand the gravity of exceeding the credit card limit.

As we have mentioned earlier, credit cards have limits. And being a sensible credit card holder it is suggested that under no circumstances you should exceed the credit card limit. This will create many problems for you. You should use credit card only when you have to. Also, if you keep returning the money in installments, you will be saved from credit card maxing of course.

Maxing out you credit card means exceeding your credit limit. This also means that you will have to return the money in full immediately or it can hurt your credit score and cost you significantly in interest. This way you will not only have to clear your debt but you will also have to pay the interest. In order to save yourself from this jeopardy, its better you refrain from reaching your credit limit and use your credit card only when needed. We forget that our credit score is of immense importance to us and card maxing could be if massive threat to that.

A credit score is a number between 300 to 850 that depicts a consumer’s creditworthiness. If your score is high, there are more chances for you to instantly get the credit card because higher the score the better a borrower looks to potential lenders. A credit score is based on credit history, number of open accounts, total levels of debt and repayment history and some other factors as well.

So if you max out your credit card, that is if you reach the limit. Your score will drop down and hence your reputation.

Excellent credit score: 800 to 850

Very good: 740 to 799

Good: 670 to 739

Fair: 580 to 669

Poor: 300 to 579

How You Can Improve Your Credit Score?

If you need to improve your credit score. There are few things that you have to keep a note of.

Using a credit card would give you bills that you will have to pay. Clearing bills means clearing your credit card loan. So its better you pay your bills on time to improve your credit score.

Pay your bills on time.

Don’t ever close your account. If you’re using a credit card, and if you do not want to use the card any longer. Its better if you just stop using the card rather than closing the account.

Try working with the best credit repair companies. Credit repair companies help you to improve your credit score. If you don’t have time to do it yourself, try seeking help from the best credit repair companies. They will help you improve your score.

Your credit score is one number that can cost or save you a lot of money in your lifetime. An excellent score can land you lower interest rates. Meaning you will pay less for any line credit you take out.

Why You Shouldn’t Max Out Your Credit Card And Why Is It Bad

If you still didn’t understand what we meant when we said that you shouldn’t max out your credit card, reach this information carefully to understand better.

Having a credit card is not easy. It is actually your own money that you’re using. Since you cant afford huge amounts at the same time, you borrow it from lenders and than with in a certain time frame you have to return all of it. If in case you fail to do so, not only would you have to pay the debt but the interest as well. All of this could literally cause you a fortune and being financial experts, we would never suggest you to do something like this. Maxing out your credit card means you have exceeded or reached the credit card limit and would no longer be able to use it. This will terribly affect your credit score and the only solution to this would be returning the money back that too in full amount. Here is why you shouldn’t max out your credit card

  • Your credit score can drop

As soon as you max out you credit card, your credit score can drop. We have discussed earlier as to how important a good credit score is. A large part of your credit score, 30 percent is based on how much of your available credit you’re using.

Financial lenders wont like it

Maxed out credit cards would forbid you to utilise anymore Financial help in the future from any lender. This is because of your financial reputation that has been affected by credit card maxing. If your credit card balances are too high, banks take that as a sign you already have more debt that you can handle and this is why you would not be able to get the loan you applied for even.

  • The balance is harder to pay

Like we have already told you before, if you max out your credit card it will be vary hard for you to pay back the whole money because that’s the rule. You will have to pay back the whole amount as well as the interest that too instantly.

  • You risk going over your credit limit

Even if you keep your balance just below your credit limit, you could still end up over your credit limit once finance charges are applied to your balance.

  • Your credit card would no longer be beneficial

Once you reach the credit limit. Your credit card would be of no use because you maxed it out. You would not be able to use your credit card for any kind of emergency because it would no longer be valid and useful. In order to save yourself from such consequences it is better that you do not max out your credit card.

  • How to avoid maxing out your credit card

If you keep a regular check on you credit card usage, definitely your credit card maxing could be avoided. You can check your balance at any time online via mobile app or by calling your credit card’s customer services. Once your balance starts to approach the credit limit, stop using your credit card for new purchases until you pay your previous balance.

  • What to do if you have maxed out your credit card

Well, maxed out credit card is definitely a problem you can not get away with very easily but definitely its not the end of the world. If you have maxed out your credit card

  • Do not apply for more credit

Maxed out credit card means that you are in debt and you will have to clear that. Till than its better you do not apply for more credit. Your lender would definitely not allow you to get credit and also your credit score will also drop.

Its better if you clear your dues and start using your credit card again.

  • Try looking for extra income

You would need money to pay back your loans. For that you may need to find a new job or something. This will help you to pay back your loans. It might take you some time because your debt would probably be a lot and not only that but you would have to pay the interest as well.

  • Create a plan

You can create a plan according to which you can pay your debt little by little. It can take up to several months. For that you should make a list of your expenditures and budgets so that you know how much each month you would be able to pay back.

  • Credit counselling

Credit counselling would help you prioritise your payments. It will help you to understand as to how you can spend and how you can pay back your loan. Your credit counsellor may recommend a debt management plan which could be very helpful for you.

  • Limit your expenditures and save money

By this time you know that if your credit card is maxed, you will have to return the money back and there is no escape from that. Its better if you put a limit to your extra and unnecessary expenditures so that you can save money and pay back the bank.

  • Ask the bank for time

If you have no savings at all and if you’re really going through a hard time. You can ask the bank for some time. It can take up to months for you to find a job or gather enough money but getting some extra time from the bank is something that is possible. You can utilise this time to gather enough money and as much money you can.

  • Pay the bank in installments

Instead of worrying about your debt every day. You can pay back the bank in installments. This way every month you will be giving the bank something and the bank would know that in some time you will clear your debt. The whole process could be very frustrating and of course overwhelming but that’s how it is. This is why it is important that you save yourself from maxed out credit cards.

If You Know You’re Dying, Who’s Stopping You From Maxing Out The Credit Card?

To be hones the answer to this could be really complex and still not to the point. It is true that once you die, you will be free from all the worries and that includes maxed out credit cards. But that does not mean you max out your credit card on purpose. This is because the property or some money you left behind will automatically be sent to the bank. Not only this, if you have some family behind. They will be liable to pay back the bank. Moreover, when someone dies its not true that any credit card debts are automatically written off. Any individual debts must be paid using the money the deceased has left behind. Only if there isn’t any enough money, the debt may be written off.

Even if you’re dying, and you want to max out your credit card. Why don’t you max it out on something important and useful. Like your treatment and medication, that may help you to survive and you might be able to live. But if that’s not the case, what would you like to spend all the money at? Spending your money on something that will not benefit you if you’re dying and when eventually dead is maybe a foolish decision to take. But there are people who have no families, max out their credit cards before they die because they know they wouldn’t have to be answerable for anything. It can not be said if one dying person should do something like this or not because it’s completely up to the way you think.

But if you do not die for some reason and you have maxed out your credit card, know that you will have to pay all your bills if you live. That could be really overwhelming and tortuous. So, in order to save yourself from all the bad things happening otherwise its always better to stay modest and careful.

This was all about credit cards and credit card maxing. For those who are new to all of this should really go through this carefully because it has all the information you need this will help you maintain your credit card life and would save you from many serious consequences. Use credit cards only when needed for something important like a car or a house. And only when you think you will be able to pay back the loan.

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