banks and credit lines, so0000 sneaky

[mathjak107]

LOOK OUT! Its getting worse than you think with NEW SNEAKY IDEAS from the banks now. Since the universal default idea was put in effect the banks found a nice new money maker.

When credit card min payments were raised the banks lost millions in interest as more principal was included in each payment. So heres the new plan.

Under universal default rules if your late on anything all your credit cards can raise your rates even though you have never been late with them, thats old news

Heres the new news: All those 0 interest rate balance transfer offers you get can turn on you big time. Using universal default risk rules they are having you transfer big balances from lots of other cards in a consolidation.
now they have been raising people big time saying they are to close to maximizing out their credit limits and their debt to credit limit is to high..

market watch had a story about some people who were raised to over 24% and had impeccable credit scores, all they did is consolidate under a credit offer. Putting 7500 on a 10,000 credit line offer did the trick.

Now that one card did it they all did it to them.

 

[maddythebeagle]

This isnt new and just the media making up a story....percent utilization is important with several issuers....besides, raising your purchase rate doesn’t really matter for many....they pay off their balances every month and carry other balances on balance transfer offers.

 

[NinjaPigeon]

market watch had a story about some people who were raised to over 24% and had impeccable credit scores, all they did is consolidate under a credit offer. Putting 7500 on a 10,000 credit line offer did the trick.

That's interesting. I'm crusing around 70% utilization on my BT credit card. However, my overall utilization is somewhere in the 30% range. I haven't noticed any increases, but that's probably because I pay all my other cards in full each month. I'll keep a look out and see what the notification mails say from here on out.

 

[Texas Proud]

I know others have been doing it.... but I know my BIL is at 100% for all his CCs that he is floating...

He calls them up, askes them if he can take it all out.. they say YES.. and he does.. only pays the minimum..

He has a couple that he must 'use' twice a month and these charges will accrue interest, so he goes to the store where they rent DVDs for $1.00... takes maybe 6 or 8 a month to satisfy the rules...

Nobody has raised his rates..

 

[Mr._johngalt]

Been taking this CC money for a couple years now. Peaked at about 180K
outstanding on about 7 different cards. If the "line" was 10,000, I
would take $9,900 to start. Never had any problems of any kind and I just throw away those "new rules" they send you. Now, let's say they caught me in some violation and raised my rate or assessed penalties. I wouldn't
pay it. I would tell them "Look guys, I've got $_______ of your money.
You want it back?
I'll pay off the balance, but first you waive all that crap you added on."
I also have the advantage that I really don't care much about my credit score. Debtors have more leverage than they think.

JG