Bad Credit Blues

I just read an article on Womanwork.net about bankruptcy relief in the US, and have to agree with the - sort of cynical - outlook. The bankruptcy laws were changed a few years ago to make it much tougher, if not impossible, for Americans to declare personal bankruptcy. And yet, in the last few years, credit card companies have been allowed to be just as tricky and deceptive as ever with their ads and practices.

The article also makes a very good point about mortgages and bankruptcy. Note that a personal bankruptcy usually has little effect on a home loan or other secured debt. It may, however, free up money to keep the mortgage current.

I posted recently about how my credit limit had been reduced by 70% on one card for no apparent reason. The thing is, if I wouldn’t have caught it, I could have used the card, had an over the limit charge accepted, and been due for a nice slap of over the limit fees and a dinged credit report!

It is also reduculous that some national banks will pay 3% interest on deposits, if you are lucky, but slap rates of 23% or more for people with reasonably good credit. If you find yourself in a situation like this, it is really time to transfer that balance to a lower rate credit card. I find some reasonable rates at some banks of 10 - 14%. It is not all about credit scores either, but about the lender’s policies!

Share This