Credit card changes
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Consumer Watch: Credit card changes
Consumer Watch: Credit card changesThe financial crisis caused major changes in the credit card industry. If you didn’t receive a letter already saying your credit limit dropped or your interest rate increased, you just may soon.
Card companies are arbitrarily closing lines of credit, lowering credit limits and scores are dropping because of it.
The credit ratings are already a highly-complicated formula, so when you lower the amount of your available credit, your score automatically drops. The score starts to drop when you hit 10 percent of your available credit and it seriously impacts the score at 35 percent or more.
CNN reports, you need to check your report at least once a year, many say twice a year so you can catch any problems early. Keep a tab on your balances and try to pay them down and just know employers look at scores to decide whether you show good money management skills.
The problem is, with millions of people in the country without jobs, people are relying heavily on their credit cards. It’s impossible to know how the recession will impact millions of credit scores when the air clears..
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The laws are crafted and written [always] in a way to give the advantage to the companies. We should demand nothing less than a US law requiring any lender to have written permission each and every time to release a clients information to anyone. The only possible exception being by a court order requested by a law enforcement agency for such information and then only if it is pertinent to an investigation. Put the big three peepers out of business.
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