If you finally decided to make a credit card deal either online or in a bank's office first of all make sure you carefully read the credit card agreement. Many problems can be avoided if you take out your magnifying glass and thoroughly study the fine print.

Not always problems with credit cards are a result of interest rates' or payment days' abuse. The credit card company is not always to blame. Sometimes undue levity of card holders can lead them into big debts and which is even worse can damage their reputation.

Here you will read two stories of unsuccessful credit card holders who found themselves in big trouble because of their incompetence. It is curious that they faced difficulties in spite of the fact that banks warned them.

In both cases cardholders had good credit score and thus good credit history which gave them access to the best credit card deals. So, low interest rates, big credit limits and best rewards were available to them. But one small mistake threw them back.

The first story is about a former college student who managed to build a good credit history thanks to her persistence and responsibility. She stood the temptation to overspend and wisely managed her personal finances.

Finally she became eligible for the best instant approval credit card and this even more increased her rating. Everything went well until she agreed to be a co-signer for a college student whom she did not know well. She did it despite of the warning from her bank that this student did not have any credit history and thus it was difficult to estimate his creditworthiness.

After she co-signed, this student quit his studies and moved to another place leaving her responsible for $6000 debt.

Unfair! Displeasing! May be it is, but the fact is that the lender never concealed that it is not reasonable to co-sign for a persona whom you do not know and who has no credit rating.

The second story is about a small business owner. Thanks to his wise and responsible money management his credit limit was increased two times. And his credit history was impeccable. But it seemed to him too much and he asked to reduce it. This was his mistake and it resulted in lowering his credit rating.

Well, this businessman ended with a balance of $30000 which was too high for him. With the credit limit of $80000 it would be all right because the debt would not exceed 50% of the credit limit. But as he asked to lower his limit, this debt turned to be too big. It is important to note that this businessman's request to lower his credit limit was a big surprise for the lender.

If your lender gives you advice or warns you maybe it is reasonable to listen to them. Which is more use your analyst skills and common sense when you make decisions concerning your credit card account.

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Comments

Victor, 07:10 AM, October 23, 2007
This an evident example of people's unconsciousness of their actions.

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