J
JAMESBJOHNSON
Guest
BLOOMBERG has a fascinating article about credit cards.
If the article is accurate, the credit card banks use every opportunity to increase your fees/interest and lower your credit scores.
Examples:
If you pay your cards off every month, they cancel the cards which lowers your credit score.
If you pay your card off and cancel the card, your credit score goes down.
If you accept a credit card offer your credit score takes a hit.
If you pay more than the minimum but less than, say, 5% of the card balance every month, your credit score takes a hit.
If your balance is more than, say. 1/3 of your credit balance, your credit score drops.
If you dont use your available credit, the card company lowers your balance and you get a lower credit score.
So, the bottomline is: The credit card companies want you on the hook for a fat interest fee, but they dont want you to risk any of their money by actually spending it.
If the article is accurate, the credit card banks use every opportunity to increase your fees/interest and lower your credit scores.
Examples:
If you pay your cards off every month, they cancel the cards which lowers your credit score.
If you pay your card off and cancel the card, your credit score goes down.
If you accept a credit card offer your credit score takes a hit.
If you pay more than the minimum but less than, say, 5% of the card balance every month, your credit score takes a hit.
If your balance is more than, say. 1/3 of your credit balance, your credit score drops.
If you dont use your available credit, the card company lowers your balance and you get a lower credit score.
So, the bottomline is: The credit card companies want you on the hook for a fat interest fee, but they dont want you to risk any of their money by actually spending it.
