How much has your credit limit gone up by

[April]

My mother did just that a couple of times. Called the credit card company and told them to lower the limit. I know it can be done, it just isn't done often.

 

[Cheyenne]

Not always true. I must have at least $150,000 in unused lines of credit on credit cards, anywhere from $10,000 to $25,000 a card. Banks are still very anxious to offer me loans, new cards, and raise current limits.

Being self-employed, I look at it as free disability insurance, since there aren't annual fees on the cards anymore. If something were to happen to my income, or my health, and I were to go through my savings, I could live off the credit cards for a few years while rebuilding. As long as you have the self-discipline not to abuse them... why not?

ditto.

Except I also keep an equity line of credit backed by my home equity to use in such an emergency. At least if I ever need it the interest may still be deductible on my taxes.

 

[The Heretic]

ditto.

Except I also keep an equity line of credit backed by my home equity to use in such an emergency. At least if I ever need it the interest may still be deductible on my taxes.

And it will usually be a much lower rate, not to mention stable; often credit card companies will let you build up a balance, then up the interest rate substantially. They figure the people who have substantial balances don't have the resources to pay down the balance when the rate goes up so they can earn a lot more interest.

 

[Pamela]

I think I have golden credit with a beacon score of 802.

That is the major decision maker. Anything over 600 with a good GDR and TDR...you'll get the loan!

 

[Pamela]

Banker Bitch???

Now that sounds like a Lit story waiting to be written...

Hmmmmm

You've got me thinking now!!!

 

[juicylips]

sg.....when are we going shopping?


You have the most gorgeous mouth.

 

[Nitsuj]

I'm down 2 an a half grand

 

[takingchances42]

And it will usually be a much lower rate, not to mention stable; often credit card companies will let you build up a balance, then up the interest rate substantially. They figure the people who have substantial balances don't have the resources to pay down the balance when the rate goes up so they can earn a lot more interest.

This is where you need to have the financial acumen to read the fine print. Very few credit card companies do as you suggest, unless you fell for a teaser rate of 1.7% or something for six months, with the rate rising to 19% when the six months are over. I recall one company that kept the discretionary right to raise your rate based on your overall credit and amount of debt outstanding, but with most of them you have to be late on a payment (and it can only take being late on one payment), for the rate to rise -- unless the rate the card is tied to rises. Most credit card contract language gives you the right to decline if the company changes the contractual repayment terms, at which time your card is canceled, and you repay the outstanding balance under the terms of the contract you entered into when you took the card.

Some of the current offers are pretty amazing, banks are doing silly things because the competition for borrowers is so intense. One company recently offered to send me a $15,000 check for me to do anything I wish with, with a guaranteed 5.9% interest rate for the life of the loan, and no cash advance fee. So long as I make _every_ payment on time, the rate can't rise. And for an unsecured consumer loan, a 5.9% long term fixed rate is outstanding!

But not as good as drawing on my tax deductible home equity line if I actually need the money, as Cheyenne so astutely pointed out...

 

[The Heretic]

This is where you need to have the financial acumen to read the fine print.

Oh I read the fine print and understand it, but most reserve the right to change your interest rate if they don't like the risk for some reason. Losing your job increases the risk, so they can rase the rate. One card I have a fixed rate of 3.9% on a substantial balance, but the rest they jack the rate up and down. It is not because I don't pay on time as I have them paid automatically from my checking account every month - it is about not being gainfully employed and how that affects my credit rating.

What I was trying to get across is that unless the rate is set in stone, they can and will jack it around. I have yet to see a credit agreement where they don't reserve the right to do that based on your credit risk and/or payment history. The exceptions are where the balance is guaranteed by some collateral like your house.

 

[BJ]

About Credit Cards

I do understand about the floating interest rates. I belong to a credit union and mine is fixed at 14%. I know some stores such as Macy's charge 21% and better. I have only one card and I try never to max it out. I even pay it all at once if possible.

 

[BJ]

Credit Card Rates

The rates suck no doubt about that. If mine wen any higher I would cut it up real quick.

 

[BJ]

Credit Cards Response to Detrich K.

Sorry to hear you went bankrupt Detrich, I have had better luck thankfully. I hope things are better for you know.

 

[BJ]

Hi Pam/ About Credit Card rates

You are right about one thing, banker bitch would make a good Literotica story. I'm not sure what a beacon score is, sounds complicated, but then math and banking were never my strong suit.

 

[BJ]

Reduction of Credit Card Limits?

Just read April's post about the reduction of credit card limit. I never even thought about it never mind that it could be done. I know there are a few people where I work who max their cards out espcially around Christmas. If I can't afford it I won't buy it.