Will MBNA, Citi, and FUSA increase rates for opening up "too many cards" in a few month time span? Because if this is gonna happen, then I better work fast to close up lines of credit. Right now I have 14 cards and am an AU on three. The lines of credit do not exceed $35K, which does not exceed my current salary. ALL have been opened since 7/01.
Any credit card company can JACK the interest rate for ANY reason, or NO reason!!! FIRST USA JACKED MY INTEREST RATE TO 22.49% on one of my cards... SO I JACKED THEM BACK by closing $43,000+ of credit for wife and myself... What was AMAZING was that they REALLY DIDN'T CARE...
Author, George is right. Rate hikes can happen for about any reason. The best advice I could give, is don't givewthem a reason to get nervous. With 14 cards and only $35k of credit, it won't take much to get some individual ratios out of whack on a few cards. Try and avoid running a monthly balance to start with and for goodness sake, don't get any of your cards near 75% of there credit limit. I'd suggest you have plenty of cards. Now, show creitors you can use credit in a responsible manner and not jam 'em to the max and get into the trap of just paying minimums.
The answer is no, if you abide by these two items on your summary line on your credit report.. 1. Keep your debt to income ration under 25%. add up all of your revolving balance totals and divide it by your total household income.. example.. total of revolving balances owed 8500 divided by total house hold income of 50000.00 will give you a debt to income ratio of 17% 2. keep your revolving usage under 60%.. example in your case say with your total of 35 k available.. divide the 8500.00 that you are using by 35 k available .. will give you a 24% usage.. which is great. 3. one last thing to keep an eye on is the amount of disposable income that you have left to pay your bills, each month.. they to keep it at at least 900.00 per month.. after you pay your installment, revolving loans.. ect.. if you rent you will have to add the rent payment to the two totals 4. keep all of your accounts current.. If you follow all of these guidelines.. you will have nothing to worry about.. Good luck and Merry Xmas Ed
I have lots of cards. My limit is close to 150,000, my annual salary has never been over 52,000. I am still getting lower rate offers and higher limits. I beg to differ on carrying balances and how they affect ones scores. In my opinion, it is all about handling the balances. I usually borrow very close to the limit, but making sure not to go over it. I always take advantage of teaser rates and balance xfer offers and payoff any debt that increases in rate. Always have credit available to move the debt. www.creditsense.com
