Repair Your Credit Profile

Credit Card Universal Default Clause

This is a nasty one you need to watch out for. Unfortunately many credit card companies have this in their terms now.

Here’s why it’s so bad:

Many credit card agreements now contain a universal default clause
that means your creditor can raise the interest rate on your credit
card for a variety of technical default reasons.

Among them are:

• A late payment or missed payment on any current credit account. This
would include any account that is reported to the credit bureaus, not
just this account.

• A change in your debt-to-available-credit
ratio. Accumulating too much debt (in the eyes of the credit card
issuer) in comparison to available credit may be considered a default.

• Going over the credit limit on any current credit account whether on purpose or by accident.

• A drop in your credit score. Bouncing a check for a credit account payment.

As if you needed more reasons to stay on top of your credit.

-Adam

Don’t swap equity for credit card debt (The Courier News)

D ear Debt Adviser: I have a home equity line with a variable rate that is about 8 percent now. The balance is down to about $33,000. I have several credit cards with high limits, which are advertising low fixed rates until debt is paid. Should I move the debt into a couple of those?

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