So, you've hit your credit card max this month. This can be quite an annoying issue to deal with, especially if you had to cover emergency expenses with your card. While it's great that you were able to pay for a major expense, you may wonder what your next steps should be.
Are you uncertain what to do now that you've hit your credit card max? These are a few things you should consider before you contact a credit union.
Hitting Your Credit Card Max Could Damage Your Credit
In order to maintain good credit, you want to keep your credit utilization down. It's fine if you need to use the credit available to you in an emergency. After all, that is what it is there for. Still, you don't want to keep it this way.
This means that you should find every way possible to keep your credit card balance within reason. Credit reporting companies recommend keeping that credit card balance low to ensure that you always have credit available to use.
Develop a Plan to Avoid This Problem
One of the best things you can do is set up a plan that helps you avoid maxing out your credit cards again in the future. One way to do this is to ensure that you are paying more than the minimum payment due. In fact, many people pay off the entirety of their balance each month to stay afloat.
If you are not able to pay off the full amount of your credit card each month, you might consider taking out a small loan. You can pay off the balance on this card so that it is available to you and then make smaller payments on a low-interest loan.
Request a Credit Limit Increase (With Care)
A credit limit increase may be exactly what you need to reduce the stress you experience after hitting your credit card max. If you do not make a habit of maxing out your card, requesting an increase will ensure that you always have some credit available in case of an emergency.
At the same time, this means that you should not request increases frequently, nor should you do this on a whim. Requesting more credit also comes with taking on more responsibility to keep that balance low.
Speak With a Financial Professional to Learn More
A professional at a credit union can help you determine what kinds of steps you can take if you have maxed out your credit card. You may find out that there are more options than you previously considered.