credit cards
3 questions
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What happens if I stop paying my credit cards?
Stopping credit card payments triggers a predictable sequence: late fees and penalty rates immediately, a credit score drop within 30 days, collections contact after 60–90 days, charge-off around 180 days, and potential lawsuit. The damage stays on your credit report for seven years.
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What is a balance transfer credit card?
A balance transfer card lets you move existing credit card debt to a new card with a 0% introductory APR — typically lasting 12 to 21 months — so you can pay down the balance interest-free. A transfer fee of 3–5% usually applies upfront.
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What is credit utilization and how does it affect my score?
Credit utilization is the percentage of your revolving credit limit you're currently using — it makes up 30% of your FICO score, and keeping it below 10% (not just 30%) gives you the best possible impact.