CREDIT - Now we can do something about it!

We all use credit. And it’s been harder and harder to keep up a good credit score, in these times where we really need it! Congress is working on several plans to curtail the unsavory practices that credit card companies are known for. And some practices that most people are not aware of. I’ve been vocal about this for a long time, because I think most people just don’t know, and I’m thrilled that Congress is finally going to do something about it.

Did you know that if you are late on your electric bill, all your credit card companies can raise your rates? Or that if you are 1 day late (not 30 days late, where you would get hit with a credit report ding, but 1 day) all of your credit cards can go up to 29.99% - actually higher, there isn’t really a limit to what they can charge. Thanks to the universal default clause, that lets the CC companies do what they like.

And there is a good chance that your CC company may cut your available credit, just because! You might have been paying down your balance (good!) and they come along and say, Oh, now we are cutting your available credit to the amount you have outstanding! Do you know what that does to your credit score? If you were in the middle of buying a home, or refinancing, your score would drop 50-100 points, and your loan could be declined, or you would have to pay a much higher rate. If you want more information on improving your credit score, go to my website www.karenmountain.com and click on the link Credit Scores- free CD.

So, let’s stop them. I think the strongest plan is from Senator Chris Dodd. Go to his website, www.chrisdodd.com and sign up to support his actions against the credit card companies. This is not a partisan issue - it’s a smart action to protect your credit scores and the ability to get a mortgage. Go there now – and Thanks!

Karen Mountain, Certified Mortgage Planner - Guest Blogger
First Priority Financial
To contact Karen send an email to karen@womenbuildingwealththrougrealestate.com