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The downside of carrying a credit card balance

Louisiana consumers who are trying to increase their credit score should refrain from carrying a credit card balance. As a general rule, doing so has no bearing on a person's ability to establish good credit. Instead, it results in a person paying interest unnecessarily. The average credit card interest rate is over 16 percent according to data from CreditCards.com. Those who carry too large of a balance on a credit card could actually put themselves at risk of lowering their score.

Ideally, people will consider establishing their credit to be a long-term endeavor. The goal is to pay credit card balances in a timely manner and in full whenever possible. Furthermore, they should try to keep the number of credit lines that they have open to a minimum. When done over a period of several years, they give themselves the greatest chance of obtaining the credit that they desire.

Those who struggle to make their credit card payments on time should consider automatic payment options. This will make it almost impossible to forget to pay a credit card bill on time. According to a CreditCards.com survey, 60.1 percent of those who missed a payment did so because they simply forgot about it. The average credit card balance in America is $6,375 according to Experian.

Filing for Chapter 13 bankruptcy may be a way for individuals to free themselves from credit card debt. During a repayment period of three or five years, creditors generally cannot try to contact a debtor or repossess property. Furthermore, they generally cannot file lawsuits or take other actions.

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