How Credit Card Companies are Hurting Your Credit Score

admin — Wed, 11 Mar 2009 16:41:25 +0000

Credit card companies are hurting your credit score with the new rules that are coming out. Across the board credit card companies are cutting credit lines, lowering credit spending limits and closing credit card accounts. Well this may seem benign to some it is actually hurting your credit score. When your credit card is closed, all of your credit history goes with it. About 15% of your credit score is based on your credit history. When the credit card goes away so does part of your credit score. When your credit limit is lowered and you have an existing balance already, your credit card company can max you out. When you go over 50% of available credit on your credit card, you credit score is impacted severly. I have seem peoples credit scores drop 100 points or more just by having their credit cards max out.

Use Your Old Credit Cards

Credit Card issuers are canceling credit cards because of no activity. You may want to dust them off and start using them here and there just so you don’t loose them. Credit cards are getting harder to get. You may loose one and regret it later if you can’t get another one. The credit card makes money when you use the card. It is actually an expense if you don’t. Banks are looking to cut costs so be sure to use your credit card if you don’t want to loose it.

Whether you have visa cards, capital one, chase cards, kotak credit cards, citi cards, wamu credit cards or any of the other credit card company cards out their, you need to be aware of the new changes going on. You want to use your credit cards instead of your credit cards using you.

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How Credit Card Companies are Hurting Your Credit Score