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Information on mortgages, home equity loans, and consumer credit to help you use the power of financing to your advantage.
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Credit > Consumer Credit Reports
Too Good Credit History
Is there such a thing as having too good a credit history? The answer is yes and no.
I'm Shirley Rooker for the Federal Trade Commission.
My friend has a major credit card that was issued at a rate of 9.9%. Imagine her surprise when the credit card bill arrived and she discovered she was being charged 18.5%.
So why was her credit rate going up? A company representative indicated that she had too much exposure because of three department store cards in her name. Never mind that these stores kept raising her limit because of her good credit record, not because she asked them to do so. And never mind that she never, ever maxed out the cards. Just because the credit was available, suddenly the cards became a liability.
Imagine her surprise when she learned her good credit, which inspired lenders to raise the amount she could borrow, also inspired a greedy credit card company to raise her interest rates - all based on what might happen.
She canceled the credit card.
The tips on this website should be considered food for thought only. Lendingtips.com is a clearinghouse of ideas, not a professional adviser. Before any important decision, please consult the appropriate professionals (lawyer, accountant, real estate agency, broker etc.).
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• Credit > Consumer Credit Archive
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