Virginia consumers may believe that credit cards are nothing more than an easy way to get into too much debt. However, they can also be an effective way to cut down on travel expenses or offer other perks. Rewards cards are usually available to those with a credit score of 690 or higher, and credit scores generally increase as balances decline.
Therefore, access to a rewards credit card may be an incentive for individuals for who want extra motivation to cut down on debt. The perks themselves may provide incentive to continue using a credit card after paying down existing debt balances. Doing so is important because closing a credit account could negatively impact a person's credit score. This is because credit scores are calculated in part based on a how long a person has had experience with credit cards.
It can also be based on how much available credit a person has or is using. By cancelling a credit card, an individual loses the credit it provided. If a person's credit score goes down because an account is cancelled, it could make it harder to get other types of loans. Regardless of how an individual uses a credit card, it is good to pay off the balance each month to avoid paying interest.
Those who are struggling to repay their credit card debt could benefit by filing for Chapter 13 bankruptcy. Doing so may allow them to keep property while paying down some or all of a credit card balance. In a Chapter 13 case, an individual makes payments over a period of three or five years. An attorney may talk more about the benefits of filing under this chapter.