Due to the incredible financial crisis going on, the credit card companies have decided to make it harder for you, the card holder. Perhaps you have no idea this is going on. Know this. The credit card companies are covering their backsides at your expense. They are tightening their terms without your knowledge. Beware! Do your research. Check out your company. Make sure of what the current terms and conditions are on your card before you try to use it again!
These are things to be aware of up front (not that THEY are being upfront):
They have begun to lower credit limits. The problem here is that they may inform you but if you didn’t read the fine print, you have no clue. You find this out at the checkout or the cashier when the item does not go through. Worse, if there is even a tiny glitch in your credit anywhere, they can lower the limits for that. How much of a cut? A LOT. Some companies are dropping the limit to just above your current balance. Then, when you pay on the balance, the limit goes down with the balance. Even worse than that is the fact that they can charge fees for exceeding your limit. But by dropping your limit, it can appear that you are using much more of your available credit. Doing that drops your credit score. Remember, the credit card companies MUST inform you of these changes. However, it might come in the form of a brochure with the changes in small print. So, watch out for that.
Hope you enjoyed those zero percentage offers. It is unlikely that you will see many of those anymore. Those offers used to be all over the place, giving no fee, no percentage on the cards for a year. Now, it is more likely that if you get one at all, it will be for six months or less. Plus IF you qualify, they will likely charge a transfer fee and it could be pretty high. Only a very few are still offering such deals.
Speaking of limited offers, remember all those card offers coming in the mail? Some were actual pre-approved credit offers, some were simply pre-approved to apply for a credit card. Those will not be coming in the mail much anymore. Most companies have cut off or cut way down on such offers. You will have a much harder time getting that credit approval too. Oh, and if you are doing the searching, they didn’t approach you, your credit score goes down.
Getting tired of hearing how many ways your credit score will go down? Better get used to it. And then there are those inactive accounts. Banks are closing them. That emergency card that you have that you have not used in a while? You might just want to check and see if it’s still active because if it is not, the bank is canceling those so that their cost goes down. They do not like maintaining them. And guess what. It hurts your credit score.
And last for the time being but not least, if you mess up even a tiny bit, there are no second chances. Big fees and late charges are in your future if you happen to be late even one time. That’s it. Banks are not hesitating for a second to hang that fat fee on your card. Once upon a time, you could call the bank and ask for the fee to be removed, apology accepted. No more. They are no longer a forgiving bunch.
Times have become exceptionally hard and the banks and lenders are showing it. The truth is that the greed of Wall Street and the lenders, many of whom are now either out of business or getting bailed out, are the culprits. We get to pay for all that both with the bailout, which is after all taxpayer money, and through the tightened credit and the restrictions that accompany it. The stock market has rebounded some more as of this writing but what is in our future? Certainly, we cannot afford to trust the credit companies.
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