HOW A CREDIT CARD WORKS

I have to give it to you America. You have given false hope to almost the complete population of credit card holders. You got Oprah, You have Suze Orman. All of which are telling you that " YOU CAN LOWER YOUR CREDIT CARD APR, JUST CALL AND THE WILL DO IT " This is so not the case. Let me just tell you!!!

If you are late on your credit card 2 times in 12 months, you will lose your great rate. You will go to a default rate of about 22- 29.99 % and that's just the way it is. No the credit card company does NOT have to lower the rate back down for you, and usually they don't do it. Why? Because the banks that issue you your pretty plastic are in business for a profit, they are not in any way a charity.

It doesn't matter how long you have been a customer, nor does it NOT matter that you have previously paid all of your past statements on time. When you go over your limit, or pay late, It's an indication that something is wrong, and the rates rise for a reason. That reason being, you are less likely to use the card at the default rate, If you are using it still after the rise in rates. It's an even bigger indication that you are desperate and have no other choice but to use the card. You are living off of the card.

Now on to statements. It doesn't matter if you receive your statement or not. It's just a reminder to pay your bill anyways. You are extended credit as a courtesy, It's a privilege to have a credit card. That is the first and most important thing to remember.

Now if your credit line gets cut, it's for a reason. Banks use an automated system mostly and they are highly accurate. Banks will trust the judgment of the system It's less expensive then have an individual person review your account. If you have experienced this, You have too much debt and the bank is not in any position to sit there and let you spend all that available credit only to be screwed in the end.
Remembering when you call in, that 99% it's a waste of your time and the person answering the phone, You won't get it back, Stop crying about it. It's not your money to begin with.

Yes your credit can be affected by a credit decrease, because it tightens your ratio in the sense that now you have utilized more of your credit line than before. AGAIN, this is a decision that's made by the institution that is lending you money.

Fee's are fees, if you pay late, you get a fee. Usually it's 39.00 It doesn't matter what the excuse is, The bank processes your payment on the day it's received. NOT by the date on the envelope or the day you wrote the check. Same with the over the limit fee's. You are billed at the end of the cycle. Bottom line. Get it through your head. It's not hard math. It goes like this. : Previous balance + any fees + purchases for the month + transaction fees + finance charges - payment = new balance. That is why you must never pay the minimum payment.

NOW THE IMPORTANT PART. If you can not pay your bill, the bank does NOT have to help you in any way. They want to, Trust me on this.They can garnish your wages, freeze your bank accounts, put liens and judgments on your credit and house. That is the last thing the bank wants to do. It will destroy your credit if this happens. The bank can and will block your acct, so that you can only pay it. AGAIN, it's all part of the terms of the card. WITH THE BAILOUT MONEY, banks have created new departments to help as much as possible to reduce loss. Programs are created based on income, If you do not have any income, More than likely you won't get approved for a program. It's that simple. Think about it folks. If you can't pay your bills now, and the bank has a program to reduce your payment. How can you pay it if you don't have the money. Don't get mad because they can't help you. It's not their fault. It's yours. You have no one to blame but yourself for the situation you are in. It's a horrible thing to say, I know. People don't like to blame themselves for their own financial meltdown. It is too easy to place the blame on someone else.


**** I know all of this because it is my job to take your calls and evaluate your financial situation and make the best possible judgment. The worst part about my job is that I hear all of the stories out there. Death, Terminal Illness, People who choose to kill themselves over money. Money can be recovered. A life can not. Please understand that the person taking your call hears horror stories all day long, and knows exactly how bad it is out there and wants to help you in every way, but can not always do that. Your situation may be bad, but please understand that it will get better. It didn't happen over night to get to where you are today, and it sure won't fix itself overnight either. Have faith in the banks. They are really there to help you as much as possible but remember, They can't help everyone.