Stop me if you have heard this one before. A man and a woman fall in love, and get married. The man has bad credit and the woman has great credit. But they work together to get both of their credit scores as high as possible. One day, the man slips up and makes his payment to the credit card company late. Should this make the wife worried about her credit score? What should they do in that situation?
That Husband of Mine is Killing My Credit!
Well, slow down because your spouse may not be hurting you at all. First of all, you have different credit cards. That is the first thing to remember. So you are not completely sunk. If you still make your payments on time and make sure everything is ok then you should be alright. In fact, if you two keep your accounts separate, then you will come out unhurt in the situation. If your name is not on his account, and his name is not on your account, then every thing is grand. By not having your names on each others account, then neither one is liable for the other.
The problem comes when you have a joint account. Once you sign on to another persons account, or they sign on to you then both people are equally responsible. What you do will affect them and what they do will affect you. So you need to make sure everything is ok with their credit. It is a way you can help them maintain good credit while watching out for yourself as well.
Try To Get the Creditors to Have Mercy
Now, you may be able to swing one past the creditors. Usually these people pay excellent attention, because it is their job to focus on your score. But it might be possible for you to contact the creditors and explain the situation. If you let them know that if was not your account, but your joint account with your spouse then you might be alright. Either that or they can just tell you tough luck. But it is worth a shot. You may have to write a letter to them explaining what is happening, and you may have to wait a bit for the response. But if it works, then it will be worth it.
Help Your Spouse Control Their Credit
The easiest way to make sure nothing happens is to help your spouse keep their credit in order. Work with them to make sure bills get sent in on time and that no payment goes missing. Take a bit of control, and help them. It will be something you both can appreciate when you have no credit worries in the relationship.
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0% APR, even though it can be limited, is a great thing. It can be very beneficial in the short time that you have it. So why wouldn’t you just apply for cards, and use them until the 0% APR expires, then just apply again for another card? Well it actually can be quite damaging.
Misuse of 0% APR
- You may just get cut off from getting cards.
The company will notice that you either keep applying for cards and only use them for that period, or they may notice that you are misusing these cards. They can then reserve the right to deny you any future use of the cards.
- You run the risk of missing a payment
All these free wheeling on these cards may cause you to be late on a payment. Since the companies are allowing you the opportunity to get 0% APR, they will be stricter on the payments. If you miss one, they you are in trouble. Then your APR will be very high.
- Opening and closing credit cards affects your credit history
This is a big one. If you keep up the process of opening and closing cards, then you may just run yourself right out of the cards that have 0% APR. So in your haste to catch the 0% APR, you may be limiting the overall time you can qualify for those cards.
- You will not be looked upon favorably if you cut corners
Companies thrive off your interest you pay. So if they notice you are just transferring your debt among cards with 0% interest, they will not be happy. Especially if this is something you are constantly doing. It may seem like a great thing to do, but know that you may be running the risk of getting reprimanded.
Be Smart About Your Use of 0% APR
Like I said earlier, 0% APR is a great thing to have. But, just like anything else, if you take it for granted then you can find yourself in some trouble. Do not take try screw the system, because you will be the one with the problems. These companies will work with you more if you work with them. So in the long term, even though the continuing 0% APR seems great, you may be better off with using that service and getting on with life after it runs out.
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It is not an uncommon practice for someone to have more than one credit card. In fact, upwards of 5 credit cards is not that uncommon either. But is that a bad thing? Many people may have 4 or 5 but only use one of those. Does that hurt your financial standing? Even if you only use one and set the other 4 aside?
Those Other Cards Are Backups
First of all, having 5 credit cards may not be that great of an idea to begin with. But only using 1, and keeping those other 4 hid away for the merchants does not actually affect you. The less you can run up in credit card debt or payments the better. So you actually are doing yourself a favor by not spending freely on multiple cards. Multiple cards can be become troublesome when you decided to use all of them, for whatever reason. That is why it is always stated to be smart with your finances and know what you are getting into. Because having 5 cards is a good way to lose control and make some mistakes that will cost your credit score and finances dearly.
Don’t Keep Applying For Those Cards
The real trouble comes when you keep applying for credit cards. If you have 5 credit cards, and applying for them over a good amount of time, then you won’t take a major hit on your credit score. If you applied for, and receive 5 credit cards at the same time, then that is not good. That sends off some sort of red flag with the creditors, and makes them believe you cannot handle your finances in a good way. That is not something you want to make them think. But do not go and cancels those cards at the same time either. That is equally as bad. That also sends off the same signal of not being able to control your finances. You would think that by canceling accounts you show them you are managing things better. But it could make them think that things were getting on top of you.
So what you want to do is find a nice midrange. So maybe only apply for a card every 9 months or a year. But when you have reached 2 or 3 cards it will be time to stop. Because you have already stated that you do not need 5, which is why 4 are rotting in your wallet. So just do not have them. If they are store credit cards then that is another thing. But you really want to steer clear of store credit cards anyways. They do a lot more harm than good.
Don’t Become a Slave to the Credit Cards
Do not think you need to apply for credit cards by the bundle. Just stick with you 1 or two, and manage those correctly. That is your best options, and can save you from a world of hurt. Show that creditor who is boss. Do not let them push you around.
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The Wedding Industry
Perhaps the most alarming thing about the wedding industry is just that. It’s an “industry”—like how space, big tobacco, steel, coal, pharmaceuticals, Hollywood, Detroit, OPEC, Martha Stewart and nuclear fusion are all “industries.” Over the last twenty years, wedding industry profit margins have increased by over 75%, proving that even when it comes to two people celebrating their entrance into a lifelong covenant of unconditional love and mutual solidarity, the business of America is still business. Perhaps the quintessential, albeit comic, image of the wedding industry first appeared in American theatres in 1991 with the release of Steve Martin’s remake of the1950 Vincente Minnelli classic that originally stared Spencer Tracy and Elizabeth Taylor: Father of the Bride. A critical, and humorous, difference between the 1950 film and 1991 remake is the pure absurdity of the 1991 wedding’s decadence. But while satiric absurdity rakes in money at the box office, the growing social expectation of a decadent wedding may leave many consumers coming to the altar with empty pockets and maxed out credit cards.
Reasons for NOT Charging a Wedding
$125 billion is roughly the size of Ireland’s GDP. It is also the amount of money Americans spent on 2.1 million weddings in 2005. The Fairchild Bridal Group estimates the average price of a US wedding at $27,327. Depending on how much you plan to spend on your wedding, paying for a wedding using a variable interest rate loan, such as a credit card, is a poor strategy if you plan to accrue a substantial amount of debt for the occasion. Additionally, if a couple uses a credit card with only one of their names on the account, the named member is legally responsible for the debt. This can be problematic in a country where credit card debt lasts longer than some nuptials.
Healthier Alternatives to a Plastic Wedding
Sit down with your fiancé and decide if you can postpone your wedding for one year to 16 months in order to save enough money to pay for the wedding in cash. Not all couples can wait. For example, if you happen to be a woman who happens to love riding bicycles or singing in public, and your fiancé happens to be a US citizen, and the State Department happens to be threatening to deport you back to Saudi Arabia when your student visa expires next Tuesday, then by all means marry your lucky sweetheart faster than Maureen Dowd can say “Robert Mapplethorpe”. Otherwise, consider postponing your wedding. You may also want to ask your family for financial support. Consider asking your respective parents if they can help alleviate wedding costs.
If You Must Pay for Your Wedding by Credit...
Protect yourself and your spouse-to-be! If you are paying for the wedding on separate credit card accounts, divide the cost of the wedding according to the percentage of money each of you brings to the marriage budget. If you produce 60% of your newly-wed income and your fiancé makes 40%, then place 60% of the wedding bill on your card and 40% on your fiancé’s. Most importantly, agree with your partner on a reasonable, time-specific plan to pay off the credit card debt once you are married. If the two of you cannot agree upon a reasonable plan to pay off the wedding debt within nine months or less, consider downsizing the wedding until it fits your budget, or postpone the wedding as you both continue to build your savings.
If you are an engaged couple, then you will want to look into The Knot Credit Card from American Express. This card helps you with all your wedding related expenses, and you do not have to worry about large fees.
Click here to apply for The Knot from American Express
Once you are a happy newlywed then you will want to check out The Nest Credit Card from American Express. When looking to transition into a joint account, and all other newlywed financial obligations, look no further then this card. It looks out for all new couples.
Click here to apply for The Nest from American Express
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What Exactly is "Piggybacking"?
Having a poor credit rating can be detrimental if you are applying for a long-term loan, such as a mortgage. The difference of a single percentage point in your loan interest rate can translate into thousands of excess dollars owed to your lender. A poor credit score can even force your lender to deny you application altogether. Consequently, clever consumers are always on the lookout for smart ways to raise their credit.
Piggybacking is a financial process that allows consumers with poor credit to “buy” a better credit rating. The process is simple. Credit card holders are allowed to add multiple names to their accounts. Generally, this is used by married couples or by parents who want to help their children build credit history. A person who is newly added to an existing credit card shares the credit history of that account simply by virtue of being added. If the account has a long, established history of timely payments, the newly added person’s credit rating has the potential to increase—sometimes dramatically.
Piggybacking Can Be Profitable—For Everyone Except the Bank
Credit building groups, such as instantcreditbuilders.com (ICB), approach people with high credit ratings. Depending upon personal credit rating and the length of time a credit account has been open, groups like ICB will pay a consumer with good credit $100 to $150 to add a new name to an existing account. ICB will then charge a consumer with poor credit seeking to raise his or her credit rating $900 to facilitate being added to the account. ICB ensures that both parties do not have access to each other social security numbers. They also ensure that the newly added member is never issued an actual card.
Legal and Ethical Complications
Once the credit card agency makes its periodic report to the credit bureau, the consumer with poor credit is dropped from the account. However by virtue of having been on the account during the credit bureau report, his or her credit rating improves. This allows a window of opportunity in which to apply for a loan with an artificially inflated credit score. While piggybacking is technically not illegal, many lawmakers have begun to question its ethics and are threatening to address the practice through legislation. Fair Isaac, the organization that tabulates credit rating, has also announced plans to begin calculating credit rating in such a way as to close the “piggyback loophole”. Additionally, some financial consultants are concerned that lenders may possibly in the future attack piggybacking borrowers for “knowingly misleading” them into believing they had better credit and subsequently sue piggybacking borrowers for perpetrating a fraud.
Fraud and Identity Theft
Identity theft is a primary risk of piggybacking. Groups like ICB need tremendous amounts of sensitive identity information in order to facilitate the piggybacking process. While these groups strive to ensure that the right information never falls into the wrong hands, consumers need to be cautious when selecting a piggybacking firm.
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The variety of credit cards available to consumers today can be daunting. The overwhelming number of options might make selecting the right card for you seem like a difficult decision. Don't despair, though, because there is an ideal credit card out there for everyone, and you can find it by following a few simple guidelines. By asking yourself some basic questions and doing a little research, you can discover the perfect card for your unique lifestyle.
Crunch the Numbers (and Read the Fine Print!)
Before searching for your ideal card, you will want to familiarize yourself with the difference between fixed-rate and variable-rate cards. Generally, financial experts recommend low, fixed-rate cards over low, variable-rate cards because variable-rate cards can change your rate regularly without prior notification. To find out when and if your rate may be changed, read the fine print that is usually buried in the mail credit card companies send you. Companies sometimes include loopholes whereby they may drastically raise your rate if you are late on a payment, for example. Also be aware of a card's APR, annual fee, grace period, penalties, late payment charges, over-the-limit fees, and cash advance interest rates before you sign. Knowing this information will serve you well both before and after you've found your perfect card.
Know Yourself
A large part of knowing what card is right for you involves knowing yourself and your individual needs. Several factors might influence which credit program is right for you, including credit score, income, age, current number of credit cards, spending needs, payment preferences, and special interests. Take a quick inventory of these factors to determine exactly what you want and need from a credit card. For instance, someone who pays a balance off in full every month will be shopping for a card much different from someone who tends to carry a balance month-to-month. You'll also want to consider any special interests you may have in getting a credit card. Would you like to earn frequent flier miles or cash back? Do you intend to use the card for business purposes or personal uses? Ask yourself these questions before embarking upon your search.
Don't Overvalue the APR in Your Decision
To ensure you are getting the best deal, you'll want to look at more than just the APR to decide on a card. Opting for the card with the lowest interest rate, or APR, doesn't necessarily guarantee that you are getting the card that will take the least amount of money out of your pocket. Other charges, such as late fees or annual fees, should also inform your decision. If, for example, after honestly reviewing your credit history you realize you probably will be late on a few payments, a higher interest rate card with lower late fees might be a better fit for you. In general, lower APRs mean you will spend less in finance charges, so look for a card with a low introductory rate. However, make sure you know how long this intro rate lasts, what the new rate will be, and whether anything else in your agreement will change at that point.
What About Pre-Approval and Card Perks?
Don't let pre-approval and/or special perks unduly influence your final decision. Pre-approval does not mean much; in fact, it usually just means the credit company has researched your credit history. Pre-approval does not mean that you will automatically get any special rates or deals by signing up.
Similarly, card perks can lure customers to credit cards for good reasons, but they can also be deceptive and costly. Some perks are worth slightly higher interest rates, some aren't. Be sure to weigh any special perks with your need to save money in finance charges. Often, perks that seem so attractive come with higher APRs, so try to find a balance between the two.
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We all know that life brings many stresses with it. One of those stresses is credit card payments! We are all human, and sometimes we make mistakes. Those mistakes can be as little as losing car keys, or even worse, not paying your credit card bill. Both are bad, but the credit card bill is probably a tiny but worse. So if that happens, what is the worst case scenario for you? Can you actually be jailed for not paying your credit card?
The Slammer, The Clink, The Hole, The Cell, Your Destination?
I appreciate the concern you have for not paying your credit card bill. But honestly...jail? You will not be thrown into jailed if you do not pay your credit card bills. We are not dealing with a criminal issue here. This is only a civil issue. So do not worry about the police knocking on your door dangling handcuffs. The worst thing that can happen to you is a person showing up at your door with papers telling you they will see you in court. The creditors have the right to get their money. They want to recover that money quickly. So they will just start off by mail you notices, then move up to phone notices. When that option is exhausted, then comes the lawsuit.
Let’s Not Make Lawsuits An Option
Like stated earlier, the creditors want their money. They will be kind at first, and that is the only stage you need to be concerned with. The key factor is that they are being nice to you, even though you are late on your payments. So do not make them upset, and pay those bills immediately. You have been granted leeway, and you should be thankful for that. Do not be happy there is no jail time involved, and become relaxed on payments. If this happens too much, then your credit will be so messed up that you might as well have been in jail. Because you will be getting no credit or any financial backing anyways, because of your poor credit.
Jump On Your Problems Before They Jump On You
Remember, if you take control of your financial situation before it controls you, then these things will rarely happen. I know that unforeseen things will arise, and troubles may happen. But whenever you can, make sure you are doing the right thing with your money. Pay off bills on time, or as soon as possible. Do not let these things get over 30 days, because that is when the trouble begins to mount. So just be careful, and make sure you are also acting in your best interest. These creditors will always act in their best interest, because this is how they have managed a successful company. So do the same for yourself, and make sure you do not let things get out of hand. In the end, you do not want to find yourself in a court room having to pay extra fees on top of the ones you already owe.
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We all are familiar with that little magnetic strip on the back of the credit card. We all know that it is very important on the card. But what happens if that strip gets ruined? Will your card still work? Don’t get all panicked…breathe and let’s find out what will happen.
The Magnetic Strip: The Key to Important Information
The Magnetic Strip on the back of the credit card is extremely important. Its name is CVV1. It is the holder of all the important information on the card. Information can be stored on there at anytime, and it can be accessed at anytime. But it can only be accessed by those who know the code to get the information (often through a PIN number). This is the most important part of the credit card, essentially. This is how you can make purchases, and access your bank information. So it is very obvious why you would need to keep this part of the card protected at all times. Some great damage can be done if someone unauthorized to use the card got a hold of it. Credit cards offer many important safety features to help you stop fraud from happening to your account.
What Happens If The Strip Gets Ruined?
Well, first of all, do not panic. You should definitely get a new card, but if you cannot, or you have to wait a while, then you can still use the numbers on the front of the card. All your information can still be accessed through the use of the number. But since the strip isn’t working, most retailers will recognize this and you will be asked to provide some extra information. This can be something like a zip code, and it is done for verification purposes by the bank or card issuer. This is done for your protection as a means to deter people who may have stolen your card or accessed your information. But you will want to get a new card as quickly as possible. Just know that in the mean time, you can still use your card. Just as long as the numbers are still readable on the front. Because credit card companies know accidents happen when it comes to their cards, they have expiration dates that help you have a fresh card frequently.
The Strip is Meant to Help You
It holds all your important information, and is the key to your finances. You can understand why it is a good idea to keep it safe. It is especially important to cut up your old card when you get the new one! Even if the strip does not work any longer you still need to cut through it, and cut through the numbers on the front. Protect all your information! Because you do not want the strip to fall into the wrong hands. It may seem like it does not work any longer, but people will still find a way to pull all your key information off of it. This is not something you want to happen ever. Just be careful and everything will be fine.
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Amanda Robbins
Team Your Credit Network
Now, you may have been on top of things like bills and payments for the past year, and you are really cleaning up your act. Oops! You make a payment late! So you rush to the mailbox and make this payment. When will the credit card company report back to the credit bureau that everything is taken care of?
Reporting To A Credit Bureau
The most common practice of reporting to credit bureaus is every 30-60 days. 60 days is the extreme, with most everyone practicing the 30 days (or once a month) rule. So do not worry, they will acknowledge your payment within the month of turning it in. That is one of the perks of having a card that will report to credit bureaus. They do it for you, and all you have to do is make sure you check to see that it has happened.
Do I Get Credit For Turning In A Payment On Time?
Actually, there is nothing that states a company is required to turn in information whether it is good or bad. So if they are reporting only the bad and not the good, call them and ask that they to do so. It is not fair to be denied good standing when you do make payments on time. You should want to improve your credit score, and they should too.
This also is true if you are using your credit wisely. If you rarely ever go over your credit limit, then get them to report that. It shows them you are responsible. Start to make sure you build up trust and confidence as well. It will help you in the long run when applying for other necessary things.
My Company Does Not Report, Or When They Do They Only Report Bad Credit
Well if this happens, then let them know. You need to be with a company that respects you when you do well. Do not let them control you. You need to be in control at all times when it comes to the issue of your finances. If you are only aware of the bad, then other people will be too. You know you do twice as many good things as bad, and that should be your defining credit quality. And above all, there are many benefits to having a good credit score.
How does a credit bureau arrive at their score?
When you request your credit score from the bureau, it should come with the following:
- The information on their credit scoring model
- The range of possible scores
- What key factor may have affected the credit score
- The date the credit score was officially created
Just a tip on what you should look out for. This information will be important to look over so that you may have a better understanding of how your credit score has been determined by the credit bureaus.
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Jay Dobbins
Team Your Credit Network
Sometimes time flies by, and important dates may pass us. Important dates like credit card expiration dates! We have all had it happen to us; noticing the expiration month is upon us and we forgot to order a new card. How much time do you have? When does the credit card officially expire?
Time has come for a new card
Don’t worry if you forget to get a new card right away. You actually have until the end of the month to use the card. But when that month is up, you better have that new card. Usually, the card will expire 4 years to the month that you got it. So, you have plenty of time to plan ahead and get a new card! Ok, I know…that is easier than it sounds. It would be easy for me to sit here and tell you to pay attention, even though it has happened to me as well.
Waiting for my new card……
Unfortunately there are not a lot of tips out there on what you can do while waiting for a new card. If you know your card will not come in time, then make sure you have enough cash for the few days you will be waiting for your new card. You will not need much, just enough to keep you a float for a few days. Also, make sure you plan ahead so that you will not need to make any large purchases with your card the closer you get to the expiration date.
The wait may seem like a long time, but it’s ok. The inability to spend money for a few days may work out to your advantage!
Don’t just throw out your old card!
Remember, the number on your old card will be the number on your new card. So you do not just want to throw out your old card, because unfortunately, someone could take it. Then they will have your card number, which is definitely not good. They could then run charges on your account.
So what you want to do is cut it up into small pieces, so it cannot be put back together. I hate to make you paranoid, but better safe then sorry!
If you do not want to cut it up, then here is a great use for it: Prison Shank From Canceled Credit Cards
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Trey Knox
Team Your Credit Network
Credit inquiries are not something that should always be feared. Sure, they can harm your credit score. But they are also harmless in many ways. The trick is to make sure you do not make multiple inquiries for many resources within an extended period of time. Sometimes that is difficult to control. There are also instances when companies will need to make an inquiry about your credit score in order for you to obtain one of their services. I know this can be troubling, and unwanted. So is there a way you can prevent those companies from making those credit inquiries every single time?
Unauthorized Inquiries
First of all, you need to make sure every inquiry that is made about your credit report is authorized by you. If it is not, then get it taken off your report immediately. You do not want something to potential hurt you, especially if it was not authorized by you. Don't be fool by someone telling you that you have been pre-approved, or anything of that nature. There is no reason to settle for something, especially if there are inherent negative effects. The goal is keep your credit report as clean as possible at all times. Things like unauthorized inquiries can negatively affect you and are not worth it. Get those things removed as quickly as you can. Because it is not something that you want hanging over your head.
Is Prevention An Option?
Well unfortunately, companies will require an inquiry if they are going to allow you to apply for whatever they are selling. That is just the way it is. But many times you can prevent this by already having your credit report on your person. You also need to be familiar with it so you can answer the questions that will potentially prohibit people from making that inquiry. So there may not be much you can do to stop companies from inquiring, but there are ways you can get around it. It will just vary on the nature of service you are applying for, and how the company deals with the credit inquiries.
All you can do is be aware of how the inquiries work. If you are familiar with the process, then you can look for advantages. Also remember to be aware of how your credit report looks. That will save you a lot of time and trouble in the long run. That even applies to other aspects of your finances, not just inquiries. So do not panic, because inquiries are not the end of the world. Just know that there can be a limit, and be aware of when that limit is approaching.
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Trey Knox
Team Your Credit Network
Let's just be honest, because we are all adults here. A credit card is the only reasonable financial device there is out there. Men, credit cards are like that gal that hangs out you, watches football and only talks during commercials. Women, credit cards are like that guy who goes to an off Broadway show with you, then engages in deep conversation with you afterwards over a mocha latte. Credit cards are reliable and will never leave you with any deep emotional trauma. The problem comes when you get tricked into relying on Credit Card's evil little financial brothers.
Payday Loans: Wait I Get Extra Paydays?
I know I just made a lot of you cringe out there. If you have had troubles with payday loans before then you know what I'm talking about. If you haven't then listen up! Payday loans are dangerous. Unless you think paying unhealthy amounts of interest is the starter to an exciting Saturday night. We're talking about up to 100%+ interest for one of these. They are called payday loans because you need money before payday, and then you will pay those loans back ON PAYDAY. Best of luck with that. You needed a payday loan because you did not have money. Now, are you going to take out another payday loan to pay off the first payday loan? Let the vicious cycle begin. Even payday loan sites like Personal Cash Advance say in their FAQs, "reliance on payday loans can create serious financial difficulties." Hey, they are just being honest.
Cash Advance: Free Money?
"Money given for you to use at your discretion." Ahh yes, it is as simple as that. Here is some money, have fun, and make sure to buy yourself something nice. Cash advances aren't grandpa. Grandpa will not make you pay back the money for your new shoes, plus money for him to get new shoes! Cash advance can't trick us, they simply just want to replace the hated name of payday loan. It seems to me like someone wants to deny the fact that they are on the same level as a payday loan company. I don't blame them.
Secured Loans: Low Interest?
You might have heard of these when walking into your local bank. They offer a pretty enticing deal when you look at the posters of low rate loans. But there is a definate catch to those tempting deals: Your house, your car, your boat, any item or asset you sign off to them on the contract can be forfeited to your lender if you have issues paying the loan back. Don't believe me? Check out the terms and conditions of the contract or the definition of secured loans. You give the bank the title to your assets and they hold on to it until the debt is paid back in full. Do you want to worry about loosing your livelihood if you have a problem making a payment? Maybe that low interest rate isn't worth it after all...
Unsecured Loans: Possible Answer?
Maybe your thinking of turning to a unsecured loan instead. It doesn't seem that bad of idea at first, but now it's time to look deeper. If you are in need of quick cash, it is likely your credit score isn't that great. Unsecured loans are beneficial when you have a very good credit score, as you will recieve a lower interest rate with a bank that trusts you. What about those with not so great credit? It just like a paydayloan, you will recieve a high interest rate. And even after you go this route with a credit union or your bank, you will end up spending the large lump sum quickly. Credit cards don't give you this temptation.
Credit Cards Welcome You with Open Arms
Listen, the concept of the payday loan or secured and unsecured loans is great. You get money when you need to use how you want. I wish that was something we all could get. But there is a reason why you need to rely on those loans, and I don't think shifting the cost over to quick loans makes the financial burden go away. Credit cards aim to love, not destroy. There is a reason you are extended credit, and not forced to pay overbearing interest charges. We know trouble will arise, and that you need a way to make things easier on you. I do not think anyone sits around wishing they could fall deeply into debt because they enjoy the action. There is a reason you can keep a credit card on you at all times. The card is a mainstay. It will not love you, then leave you on payday and take half your possessions. Rid your life of any evil financial giants, and let a credit card pull you through the dark times.
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Trey Knox
Team Your Credit Network
So you have always made sure you followed all the rules set out by the credit card company. But one day they lower your credit limit, after all your hard work. Other then being frustrated, what can you do? I know you may feel helpless at first, but there are things you can do to find out why this happened.
Tips If Your Credit Limit Has Been Lowered
- Consult your credit score
In order to keep up to date with your credit, you should be doing this anyways to make sure you always know where you are standing. Check to see if any numbers have been drastically changed in any way over the past year to six months. If you stay on top of it, this step should be easy. A change in your credit ranking will definitely effect what amount the credit card companies will offer you.
- Make sure you find out if you were late on any bills
You may have sent your credit card bill in on time, but the mail service could have misplaced them. Unfortunately some companies will not be generous on their late terms. This can affect your credit score if it happens often. You can always be cautious and send in your bills before the end of your grace period or even early so that you will not have to worry about late fees or the effects on your credit score. Find out how late is too late with your credit card company, and pay your bill on time.
- Be aware of your financial situation at all times
Manage your money and your credit cards correctly. Make sure you don't do anything that would give them a reason to lower your credit. Try to keep a budget and an account of all your spending as you need to make sure you do not have any fraudulent charges on your account. Don't assume the online account summary is correct, take the time to sort out your expenses.
- Contact your credit card company directly
If in doubt, go to the source. If they cannot give you a complete answer, then something is definately wrong. They will be able to inform you of why it happened and how you can cure the situation in most cases. Generally they will even send out some form of a letter when your credit has been lowered to make you aware of the situation. Don't hesitate to ask the company if you have any questions; as much as they have lowered your line of credit, they do value your business.
People make mistakes, and the credit companies understand that. Every step of the way look for errors or things that could have affected you negatively. Don't rely on a mistake, but just be aware. The slightest mistake can be damaging. When you have found the mistake, learn what you can do to correct it in a timely fashion. Overtime the credit companies will forgive you. Keep at raising your credit score, and you will find the many benefits of having a high credit ranking.
Be Aware At All Times!
The main point of this blog post is to make sure you know what is happening financially at all times. If they lower your credit limit find out why and ask questions until you understand. Then find out how you can fix it. Don't just sit there and let it affect you. If there is a way to lower your credit limit, there is also a way to raise your line of credit back up. So be proactive and go find out how to improve your financial life!
Additional Resources:
Trey Knox
Team Your Credit Network
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