Debt Negotiation Zone » visa credit cards http://debtnegotiationzone.com Debt Negotiation Fri, 19 Aug 2011 22:59:35 +0000 en hourly 1 http://wordpress.org/?v=3.2.1 How Credit Card Companies are Hurting Your Credit Score http://debtnegotiationzone.com/how-credit-card-companies-are-hurting-your-credit-score/ http://debtnegotiationzone.com/how-credit-card-companies-are-hurting-your-credit-score/#comments Wed, 11 Mar 2009 16:41:25 +0000 admin http://debtnegotiationzone.com/?p=533 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.

]]> http://debtnegotiationzone.com/how-credit-card-companies-are-hurting-your-credit-score/feed/ 0 Can A Credit Card Company Lower My Credit Limit? http://debtnegotiationzone.com/can-a-credit-card-company-lower-my-credit-limit/ http://debtnegotiationzone.com/can-a-credit-card-company-lower-my-credit-limit/#comments Tue, 06 Jan 2009 13:56:15 +0000 admin http://debtnegotiationzone.com/?p=486 Is a credit card company allowed to lower your credit limit?  A credit card company is allowed to lower your credit limit without warning if they see fit.  The credit crisis has many credit card companies in a real bind.  Many credit card companies just can’t pay their credit card bills and are defaulting on their credit cards.  The credit card companies want to beat you to the punch and don’t want to extend themselves any further than is necessary.

My Credit Limit Has Been Lowered, Why?

You credit card company wants to protect themselves from further loses, so don’t be surprised if you see that you available credit has been decreased or the card has been canceled.  The credit card companies are worried about consumers defaulting on their credit card bills.  With millions of Americans losing their jobs, people are going to be turning to their credit cards to get them through.  The credit card companies do not want to be a bridge for you.  They are going to be analyzing your purchases to search for irregular behavior.  Cash advances and spikes in purchases may cause your credit card to be closed.

Do Not Expect Your Credit Card To Be Their For You

A back up plan for emergency cash should not include your credit cards anymore.  Start now to save for a rainy day.  Set a side a percentage of what you are making now into a liquid savings account.  You may even want to consider putter your money into a secured credit card.  Then it will be like using cash and you will spend less.

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