Disclaimer: I am not a lawyer. I am
only publishing my interpretation of my situation. You should seek your
own legal representation for your own particular
situation. Do not rely on my
opinions or statements for your own purposes as state
and local law varies as do individual circumstances.
My American Express credit card, which had been maxed
out, is now paid off in full. Of course, I've been doing this
for the past few months - ever since American Express reduced my
available credit limit by more than 50%. I think this time is
different though. American Express has reduced my credit limit
to such a low amount and has made a practice of reducing my
credit without notifying me and twice now that I no longer trust
what little credit they have afforded me. I have instead
starting relying on my debit card which pulls money out of my
checking account and the old faithful - cold, hard cash.
Even though I will
probably not use my American Express credit card anytime soon
and the balance will remain at zero, I think American Express
might come back soon and reduce my credit balance to near zero
(it is currently only $1,500). I am surprised that they have not
cancelled the card. I think the credit limit may eventually be
set at about $300 - just like a college kid (even though I am 37
years old now). All of this because my credit score is sinking
lower and lower due to my three foreclosures.
It is important to note
that American Express does not care about how I have paid the
balance on this credit card over the past twelve years (almost
always paid in full each month and never after the due date).
Probably every other credit card company does the same thing.
The credit card companies only care about credit scores. They do
not even look at what causes the credit scores to go down. Do
not think for a minute that past good behavior will help you
keep your credit cards or get a loan or anything else relating
to money. It all goes back to your credit score.
I suppose pre-paid credit
cards are different, but aren't pre-paid credit cards really
just debit cards in disguise? I think they are. After all, I do
not think you can charge more to a pre-paid credit card than you
have pre-paid.
Sadly, cash may be the
one thing that I have to resort to as my credit score has little
hope of improving any time soon (not for years, maybe decades).
I will use the debit card as long as I can, but I see cash
becoming more and more my buddy (for as long as it lasts).
|
