What Can You Do If A Credit Card Company Lowers Your Credit Line
I have been asked recently about the consumer credit industry. Here are some basics you need to know about what is going on. Credit card companies still want customers, but they want good ones. They are being more selective. Wouldn't you be if this was your business? Here are some tips on what you can do if you need credit or if you had your credit limit decreased.
Credit card companies have become more selective in the last six months this does not mean credit is dead. Credit is still being given, but consumers need to take a different approach if they need credit during these challenging economic times. For example a person who has a credit score in the good credit category should apply for a credit card in the average credit category.
Consumers also need to make every effort to pay credit cards on time. One missed payment on a MasterCard and a person could lose $1,000.00 of their credit limit. In addition having large amounts of debt will also subject someone to having their credit limit lowered. Credit card companies are looking for safer bets.
Don't just talk to the first person on the phone, and accept their reason on why your limit was lowered and hang up. Ask to talk to the next person and the next until you talk to the person that actually can overturn the decision.
If you have a good payment history with the issuer it is in their best interest to restore your full credit limit. Even if you missed one payment or you have a high rate of debt on your credit report, banks want to keep customers that earn them profits. If you are proactive and challenge their decision there is a good chance this decision can be overturned.
In some cases it is not possible to restore your your credit limit to previous levels. In this situation a person has really one other option. Applying for another credit card. If a person has good credit it is wiser to apply for a credit card offer for fair credit. These card offers are easier to get approved for than good credit offers. Some fair credit offers have no annual fees. The reason it is better to apply for a fair credit card is that if your limit has been reduced, your credit score may have been effected as a result. Applying for fair credit cards will better your chances for an approval.
I have been asked recently about the consumer credit industry. Here are some basics you need to know about what is going on. Credit card companies still want customers, but they want good ones. They are being more selective. Wouldn't you be if this was your business? Here are some tips on what you can do if you need credit or if you had your credit limit decreased.
Credit card companies have become more selective in the last six months this does not mean credit is dead. Credit is still being given, but consumers need to take a different approach if they need credit during these challenging economic times. For example a person who has a credit score in the good credit category should apply for a credit card in the average credit category.
Consumers also need to make every effort to pay credit cards on time. One missed payment on a MasterCard and a person could lose $1,000.00 of their credit limit. In addition having large amounts of debt will also subject someone to having their credit limit lowered. Credit card companies are looking for safer bets.
Here is a tip that works: If your credit limit is lowered call your credit card company and ask for it back.
Don't just talk to the first person on the phone, and accept their reason on why your limit was lowered and hang up. Ask to talk to the next person and the next until you talk to the person that actually can overturn the decision.
If you have a good payment history with the issuer it is in their best interest to restore your full credit limit. Even if you missed one payment or you have a high rate of debt on your credit report, banks want to keep customers that earn them profits. If you are proactive and challenge their decision there is a good chance this decision can be overturned.
In some cases it is not possible to restore your your credit limit to previous levels. In this situation a person has really one other option. Applying for another credit card. If a person has good credit it is wiser to apply for a credit card offer for fair credit. These card offers are easier to get approved for than good credit offers. Some fair credit offers have no annual fees. The reason it is better to apply for a fair credit card is that if your limit has been reduced, your credit score may have been effected as a result. Applying for fair credit cards will better your chances for an approval.
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