February 23,2008
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Proper Care and Handling of Credit Cards, Pt.4
Keep the change, no limits.Going thru changes: Promo offers can expire un-noticed until the hammer comes down. ‘Due dates' and ‘grace periods' are frequently being changed by the lenders (reportedly, without warning), causing honest consumers to fall into ‘delinquency' and ‘default'. Watch those monthly credit card statements closely and track what day you should expect to receive them. Note any bad changes and contact your credit card lender immediately if something goes wrong. Even if you inadvertently ‘slip-up' and miss a credit card payment, if it only happens once, you have a good chance of getting your lender the first time to ‘forgive' you. Request it be expunged as a ‘mulligan'. AFTER accomplishing this, now ask for penalties to be forgiven as well. Pace your requests in the conversation as you consummate the bigger requests before asking for the lesser ones. Timed and delivered properly, you'll probably all requested. Remember, this is a one-time deal. Don't expect much mercy if it happens again.
Credit limits: One of the major rubs with credit cards these days is the issue of changing credit limits. Rub, because the credit card industry must do it and the consumers don't like it. It is going to continue for quite some time by necessity so, perhaps, the best thing to do is to adapt. Expect it but, have a counter when it happens. There are, generally, three ramifications to the consumer:
1) Overcharging the account: This is a major problem. Horrible things happen as a result and the costs can be high.
2) Credit card score falls: This consequence is not so imminent but, can still be serious. Credit card scores favor a 30% ‘utilization ratio'. This means that lenders like you to owe about one third of the maximum of what you would owe maxed out. You're not a big risk but, still you're paying the lender a finance charge each month. They're okay if you owe nothing and pay no interest, too. But, they're not okay of you owe much over 30% of your credit limit. So, if you're riding at the favored 30% and your credit limit is cut in half, now you're sitting at 60% ‘U:R'. Not good. Expect your credit score to fall if you don't either pay your balance down or have your limit restored on that account or else open another account.
3) You can't charge as much: Open another account or ask to be reinstated where you were. Often they will do this on your request.