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Credit card companies raising your intrest rate?
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wannabemom
look who's freshly baked!
Member since 12/07 7364 total posts
Name:
aka marriedinportjeff
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Re: Credit card companies raising your intrest rate?
well, in the end, I believe there is definitely a difference between factors affecting your credit score # and factors affecting a mortgage or car loan application.... I think the two are being a bit blurred in this thread.......
I have never had too many credit cards (always under 5).... and all usually have only the current months charges on them. When we were applying for a mortgage, I made sure I closed one or 2 of the most outrageous credit lines (25k and higher). It frankly wouldn't make sense for a bank to approve a huge morgage knowing at any moment, we could burn through 50k of credit on a whim. fine, the credit rating and history indicates that it is likely we won't, but it is much more reassuring to them that we don't have over 100k in credit already available to us. I had a financial advisor recommend doing these things before the mortgage process.
I also have always been under the impression that during these application processes, it IS better to have not only a credit card history, but also a loan payment history..... car loan... whatever. Once again, the loan officer handling our application mentioned this to us....
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Posted 4/1/08 1:53 PM  |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Credit card companies raising your intrest rate?
Posted by wannabemom
I have never had too many credit cards (always under 5).... and all usually have only the current months charges on them. When we were applying for a mortgage, I made sure I closed one or 2 of the most outrageous credit lines (25k and higher). It frankly wouldn't make sense for a bank to approve a huge morgage knowing at any moment, we could burn through 50k of credit on a whim. fine, the credit rating and history indicates that it is likely we won't, but it is much more reassuring to them that we don't have over 100k in credit already available to us. I had a financial advisor recommend doing these things before the mortgage process.
That's not accurate. I had over 200k in available credit and I had no problems getting a mortgage. Closing two high credit cards is very bad practice because it lowers your debt/credit ratio.
People seem to think that banks get nervous if they see tons of available credit. This is simply not the case. Even if you don't have that credit available when you get the mortgage, what's stopping you from getting high limit credit cards after you get the mortgage. Believe me it is NOT difficult to get credit cards with high limits. Banks know this.
The banks look at three major factors: Your income, your current debt, and your payment history. They very rarely look at your total credit limits.
Bottom line you should never close credit cards unless a mortgage underwriter says he will only committ a motgage if you close these accounts. In fact I wouldn't even go by what a loan officer says because half the time they are nothing but glorified salesman that really don't know what they are talking about in the first place. The underwriters are the people that know what they are doing.
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| Posted 4/1/08 2:11 PM |
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Nicole728
My Happy Girl
Member since 7/06 8198 total posts
Name:
Me
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Re: Credit card companies raising your intrest rate?
Posted by Meaghan729
i havent gotten a letter - but i dont have any CC debt except for 0%....
they are allowed to increase his rate if he is late on ANYTHING -but knowing you I doubt this is the case and I would tell him to call back and speak to a mgr. tell them that you are going to transfer the balance unless they keep your rate the same.
lol, exactly...we are NEVER late on anything. This is only his CC...he has a small balance on it...looks like they are raising his intrest rate from 8.9% to 14.25%...that is outragous!!!
I told him to call back and transfer the balance to another card!
I could understand if he was late often and on anything...but being that not only does he have a CC with Wells Fargo they also have our Mortgage, you would think they would not screw over multiple acct holders. Guess not!
Guess this happens more than it should. Makes me hate CC's even more!
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| Posted 4/1/08 2:49 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Credit card companies raising your intrest rate?
Interest rates are one of the easiest things you can negotiate on with banks.
If you don't like your rate, call them up and demand they lower it.
They won't be giving you 0% or anything that low, but they can definitely lower it a few percentage points if they feel you are a worthy enough customer.
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| Posted 4/1/08 2:51 PM |
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| Pages: 1 [2] |
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