If your have poor credit history, you may want to consider reducing your total credit limit. This will prevent excessive credit from hurting your score. In addition, it can reduce your risk of getting into more debt in the long run.Do note that reducing your credit limit can temporarily cause your debt-to-credit ratio to rise significantly. This means your score may take a dip in the short term.However, if any of the following conditions apply to you, you should consider asking your banks to reduce the limits on your credit cards, and other loan-related products.1) You can pay off a large portion of your existing outstanding credit balance quicklyAs an example, say you have a limit of $5000 on your credit card with an outstanding balance of $4000. You want to reduce the credit limit to $2500 and carry a balance of $1250 or less. This means you need to pay off $2750 immediately before you can request the reduction.If you can't repay the $2750, getting your limit reduced can actually … [Read more...] about Can Credit Limit Reduction Help Your Credit Score?
Lowered credit limit
If you feel that your interest rates are too high, it may be possible for you to get lower credit card interest rates. Many people simply accept and live with high interest rates as a fact of life and do not realize that they may be able to obtain better rates.The first possible way to get lower card interest is to simply call your credit card company and request it. Obviously, this approach will not work for everyone. For this to work for you, your account must be in good standing and have a solid payment history. You will also have to have an adequate credit rating. If this is the case, then you may be eligible for a lower rate. Your credit card company will review your credit and give you the lower rate if you qualify.Another option for getting lower interest is to transfer your balances to a lower interest card. If you have good credit, you likely receive numerous offers from credit card companies offering lower interest cards. However, this option is also limited to those … [Read more...] about How To Get Lower Credit Card Interest
Most of us have limited resources to work with, and need to make our money stretch as far as possible. When it comes to our credit cards, finding the best interest rates possible will have a very positive impact on our financial picture. Here are some tips on how to lower credit card interest rates and minimize their impact on your monthly budget.Before you can have any meaningful discussions of how to lower the rates you pay for credit card interest, you must first have a firm grip on what you are currently paying. Pull out the agreements on each of your credit cards and create a spreadsheet that will tell you at a glance what rate of interest you are paying on each of your current cards. Don't be surprised if you find that you are paying a higher rate of interest on those department store credit accounts. Also, you are likely to find some variance in the interest rate you are paying for your major credit cards as well. Also, document any cards you have that will allow you to transfer … [Read more...] about How to Lower Credit Card Interest Rates
If you have consumer loans or credit cards in good standing, it is good practice to ask for credit limit increases every six months. Just by increasing your maximum limit on your accounts can vastly increase your credit score. Not only does it help to reduce your debt ratio but credit bureaus look favorably on these increases and this is how not posting credit limits on credit reports can hurt you because increases in credit limits show your credit worthiness in the eyes of lenders.When you ask a lender to increase your credit limit usually the creditor will do an inquiry to the credit bureaus. Although these inquiries will count against your credit score they usually only count against you for one year. This trade-off can help you in the mid to long-term. A small mark against your score because a creditor inquired about your history will be more than offset by the higher credit limit and the decreasing your debt ratio. You want to be sure that you qualify for a higher limit … [Read more...] about Quickly Find Out How Not Posting Credit Limits On Credit Reports Can Hurt You
Has anything changed on your credit card statements? If no, consider yourself lucky. According to a recent Synergistics Research Corp survey, 21 percent of consumers reported receiving an interest rate hike, 17 percent reported an increase in minimum payment due and 9 percent had a decrease in credit limit. The actual results could be much higher because the survey respondents were people who actually realized there was a change. Many people mistake notices from their credit card companies as junk mail when in fact it was notification of a change in terms. As a result, most people find out about the adverse action after it has already occurred.Issuers as a whole are reducing the risk in their credit card portfolios. They face the economic pressures of rising unemployment, charge-offs, increased lending costs and profit-cutting regulations that take effect in July 2010. Already, the average debt deemed un-collectable has doubled to 7.1% up from 4.6% a year ago.According to a Federal … [Read more...] about Credit Card Companies Slash Card Holder Credit Limits