So I Get A Form Letter From Credit Card Co. Monday.......

[1BiGG1]

Nope not near half my credit line. This makes me wonder even more!

When you mentioned checking your credit score, did you get a tri-merge or a single? Your “real” score is the middle score of a tri-merge. Individual scores from the three major bureaus very widely and can easily be a hundred point spread between them. I have seen many credit reports where a long-term married couple with exactly the same credit lines and histories have huge spreads between their scores.

I have also seen many credit reports where a very-low income individual with little credit history has an 800+ score and others with very-high incomes and long-term perfect payment history on many trade lines with scores in the 600 range. This and many other issues just ani’t right!

The drop in score in your case could be an issue, or may just be a new scoring model in a now-tighter credit market. How long have you had the accounts and have you applied for any new credit recently? These are two of the known’s in modeling.

FICO scores are one issue that truly pisses me off as the basis for scoring is mostly-secret (likely one of the best kept secrets in history) and there’s not much one can do about injustices if one doesn’t know what they are. Also, there are many instances where items are placed on peoples report that don’t belong there yet it’s not easy to get them removed, and most don’t even know about them in the first place. For instance, it’s very common to see a trade line that says “Closed by Credit Grantor” when the consumer actually closed the account. The former has much more of a negative impact on score then the latter but most consumers do not know this until they have a problem getting new credit, or never know it and that lower score costs them more money in insurance rates, existing credit etc.

Score modeling should be mandated as public information so consumers can base their decisions on information, not guessing which leads to the many innocents we see suffering the higher costs of lower scores when they did nothing to deserve them.

 

[D_Tintagel_Demondong]

Unfort.u HAVE to have a credit card these days. You can't book flights etc w/o one. PLUS they come in handy sometimes.

You can get a prepaid card instead. They are much easier to obtain and they are accepted whereever credit cards are accepted.

You just load the card with money from your bank account and then you are set. Visa Gift Card | Personal | Visa USA

I don't use prepaid cards, personally (reloading them regularily is a hassle). I also don't want to encourage the use of credit. I am just saying that this is an alternative to credit cards--and your lender won't have you by the balls.

 

[EagleCowboy]

You don't need a credit card to book flights or rent cars. Debit cards work just fine for doing that. And there's no interest rate!!

 

[deleted213967]

retain the lower amount and close the account

this is some of the fallout of the bankruptcy bill passed by the republicans

write to your congressman explaining the circumstances and demand that the 111th congress revisit the banking rules

I love a simplistic explanation. Here are the 75 Democratic members who voted Yea.

US Congress Votes database

109th Congress / House / 1st session / Vote 108

Robert Andrews, Joe Baca, Brian Baird, Melissa Bean, Marion Berry, Sanford Bishop, Dan Boren, Leonard Boswell, Rick Boucher, Allen Boyd, Dennis Cardoza, Ed Case, Ben Chandler, Emanuel Cleaver, Jim Cooper, Jim Costa, Bud Cramer, Joseph Crowley, Henry Cuellar, Artur Davis, Jim Davis, Lincoln Davis, Chet Edwards, Bob Etheridge, Harold Ford, Charles Gonzalez, Bart Gordon, Al Green, Jane Harman, Brian Higgins, Ruben Hinojosa, Tim Holden, Darlene Hooley, Steny Hoyer, Steve Israel, William Jefferson, Ron Kind, Rick Larsen, Jim Matheson, Carolyn McCarthy, Mike McIntyre, Kendrick Meek, Gregory Meeks, Charles Melancon, Robert Menendez, Michael Michaud, Alan Mollohan, Dennis Moore, James Moran, John Murtha, Solomon Ortiz, Ed Pastor, Collin Peterson, Earl Pomeroy, David Price, Nick Rahall, Silvestre Reyes, Mike Ross, Steven Rothman, Dutch Ruppersberger, John Salazar, Stephanie Herseth Sandlin, Allyson Schwartz, David Scott, Ike Skelton, John Spratt, Ted Strickland, John Tanner, Ellen Tauscher, Gene Taylor, Mike Thompson, David Wu, Al Wynn

 

[deleted213967]

............telling me they're raisiing my interest rate from 9.9 to 14 something. WTF? I pay ALL my credit card bills on time, and more than the minimum. Included in the letter in small print is the fact that I can call them and tell them I don't want this to happen. BUT If I do my accoun will be closed. WTF? Then I get an email today from the credit agency saying my credit score has changed 20 points. I was quite excited thinking I went up in score for being so good at paying.
THEN I GO and check my credit score and it''s ACTUALLY been LOWERED 50 points! WTF?
What is going on w/this country and all this financial stuff?!!!!
I only applied for that card b/c the interest was below 10%. A big WTF to HSBC!

There is a catch-22 with closing the account so that you can pay it off under the old terms: it will very likely lower your credit score, especially if you have few credit cards and a low overall available credit.

Well over a third of your score is determined by the ratio of your used consumer debt / your available credit. Closing your account will lower your available credit but not your used credit.

The best way to get back at them is to become a free-loader: never carry a balance, enjoy all the perks to the max.

 

[nicenycdick]

Almost all credit card agreements allow the company to unilaterally raise their interest rate at any time for any or no reason at all. They are required to give you notice (usually 30 days) and your only alternative is to pay off the balance and close the account. So, it is not necessary that you do anything wrong or for your credit score to change in order for them to raise your rates. In this economic climate, it is not surprising to see many companies doing just that.

There is something else your must consider. Have you been a victim of credit or identity fraud? That can, of course, adversely affect your score and you wouldn't know anything about it. I strongly suggest that you get a credit report immediately and look at it very carefully. It happens more today than you realize.

 

[Gl3nn]

Why credit cards at all? Just use your debit cards and maybe your visa.
Problem solved. One of the main reasons of the financial crisis is the credit-society

 

[polesmoker]

Debit cards are the way to go. If you can't afford it right now, you probably really don't need it. Credit companies want you to buy now pay later so they make money on the interest.

 

[1BiGG1]

Why credit cards at all? Just use your debit cards and maybe your visa.
Problem solved. One of the main reasons of the financial crisis is the credit-society

Why not just say don’t finance a home or vehicle also? People finance because it makes economic sense for many reasons.

A credit card affords one the opportunity to spend what they want, when they want and pay it back when it’s most convenient which can save money in many cases even with paying interest.

A credit card is also like an insurance policy like in case of a breakdown with the vehicle that you need too get to work for instance or a last minute ticket to visit a sick or dying relative.

The point is sometimes its wise to have insurance and the ability to save yourself some money, even if the savings will cost you a little in interest that can be less than the savings.


BTW: If a "Visa" is not a debit card, it's a credit card so I don't see what you are saying with the above quoted statement.

 

[Gl3nn]

With Visa I mean indeed a credit card. But that's just one card.
I mean don't get a credit card to pay it off with another credit card and so on.
Btw, a Visa is not the kind of credit card as in America. Look it up on wiki or so.

And if you want to buy a house or car, loan some money from the bank.
But of course...only to people who can pay back their loans... (still can't believe they gave loans to those people)

 

[D_Kay_Sarah_Sarah]

Apply for the absolute minimum amount you need and never increase it when they ask you to. Only increase it if you get a income increase.

 

[B_theOtherJJ]

All my credit cards are at "0" %. Ya gotta shop around. I get "0" offers all the time, and when the rate expires, I transfer the balance to another "0" offer. Been doing it for years. Keep making my payments on time, and never any problem.

 

[deleted213967]

Apply for the absolute minimum amount you need and never increase it when they ask you to. Only increase it if you get a income increase.

Wrong and wrong.

1. These days, automatic credit limit increases are as rare as a profitable bank.

2. A credit line increase will automatically increase your credit score. It is up to you to use (not use) the additional credit wisely.