Coming Soon: Free Book

Coming Soon: Free Book
Planning to give away a book or two!

Friday, January 25, 2013

What in the World?

Some background; I used to own a business. The landlord didn't renew the lease and I ended up filing bankruptcy.  My credit rating was and is very good but the bankruptcy is looming out there.
I don't like credit cards but part of the mandatory "retraining" of the bankruptcy process actually tells you to start with a prepaid credit card until you get a pre-approved offer. Then open up a normal credit card and pay it off every month to build up the credit. 

I had a credit card that I had all paid off and cut up but I had forgotten to call and cancel it.  One day, when I was looking for a prepaid credit card, I received a new card in the mail.  "You haven't used your card in over a year." I started using it periodically and I put some money in a CD, set up for regular (but small) payments to be pulled out of my checking with a balloon payment due immediately after the end date of the CD. I paid it off and the bank reported a perfect payment history.  (Now you know a good trick to raise your credit rating.)

So what has my feathers all ruffled? Three years ago I opened a (store) card when making a major purchase to receive 10% off and rewards points.  It was a card that was not limited to that store. Today my available credit is over $8000.  I rarely let any balance roll over to the next month.  I've changed jobs now and I've been looking for a credit card that would have better "perks".  I get about 20 solicitations a month to choose from. I decided to go with a card sponsored through my airline rewards program.  I got the card the other day.  It has a limit of $12000! 

I called a loan officer for a recommendation.  I was thinking I would call and cut back the limits.  He told me that as long as I was keeping them paid off or with a minimal balance that the higher limit would be have positive affect on my credit rating.  I just want to go on record saying, "that is so backwards and dangerous!"

No wonder the US economy is so messed up!

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