Thursday, November 20, 2008

Bad Credit Card Companies Bad - Watch how they effect your Credit Score

Does anyone watch Carmen on CNBC? For those of you who don't she has a show advising people how to manage their finances. For you who don't know me I am not much of a TV fan. Actually I think it turns your mind into mush. However I do watch informative TV the history channel, CNBC, News, and yes I hate to admit it those House shows on HGTV (sometimes you can pull some worthy information from those shows).

Well last night the show was about credit card companies jacking interest rates, cutting your credit limit, and canceling cards for lack of use or having a zero balance. What got me angry was that while the credit card cuts your credit limit and cancel your card for not using it and you have a balance on another card your Credit Score is also hit.

So here we go again good customers paying there credit cards on time paying more than the minimum due are getting punished again. Now not only are they increasing your interest rate ridiculously they are also reducing your credit score.

THE THEORY BEHIND THE MADNESS - your debt to available funds ratio has busted your credit score. I am mad as hell and you should be also.

So what does this mean. Now more good customers in this country will have a lower credit score. People who actually have great credit will be denied loans because of their credit score. This is only proving to me what I have been taught numbers lie and liers use numbers. How do we get our customers qualified for a home loan when the credit card companies are not only wacking us with unaffordable interest rates but now they are affecting our credit scores. Oh and by the way this is all ok because there is no regulation to prevent this from happening. Well you know what something has to happen and something has to change.

I just wanted to provide you with the information so if possible you can fight back. Pay them off as quickly as you can. If you can't pay them quickly start looking now for a credit card with a better interest rate even if it is 8% because no one seems to know hold long that will be available. Carmen's Buzz says in this time 8% isn't a bad rate.

This sucks!



Roxy said...

Hi Lisa,
Nice blog, thanks for following my blog I'll do the same.

It will be nice to talk with someone in the same, well almost the same business.

I also added your blog to mine.
Talk to you again soon


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