Why do Debt Warriors discourage Americans from closing out Credit Card Accounts?
It’s because we know the secrets that Banks, Creditor and Credit Unions will not tell Consumers. Did you know that closing an active credit account can damage your Credit Score? Yep, it’s Gods’ honest truth. But why?
Credit Card Management Is Counter-intuitive.
Do you think that Credit Card Companies think of “deadbeat’s” as Credit Card Holders who don’t pay on-time? Nothing could be more false.
Credit Card Companies view dead-beats as the Consumers who pay their past-due balance on time. Why is this? Because Credit Card Companies make more money from late paying Credit Card holder’s. Those who pay on time avoid massive fee’s. Less fee’s equal less money for the Creditors.
Late paying Card Holders are “Revolvers“. Revolvers pay more in Interest and Fee’s over the life of the Credit Card.
This is totally counter-intuitive. In fact most Credit Card accounts require a counter-intuitive attack to defeat the debt that they cause.
The Truth About Credit Card Utilization Ratio’s.
Are you familiar with your Credit Utilization Ratio? It’s basically the amount of Debt you have compared to the amount of Credit you have. For example, if you have a Credit Card with say a $10,000 Credit Limit and you’ve used $5,000 of that you could be seen as a Credit Risk, because of your 50% utilization rate on that card.
Credit Card Accounts Closed From Lack Of Utilization?
On the other hand, if you don’t use the card, it will be considered “Inactive” and quite possibly closed. Is it fair that because you’ve been trying to be responsible, that your Credit Card Company cancels your account? No, it’s not fair – but it is a reality for millions of American Credit Card Holders.
Dorothy called me because her account had been closed because she hadn’t used it in over six months. She was planning to use it as she had always done before. Dorothy would charge for the Holiday’s and pay it off at tax time. She had done this for years with no problems.
But one day, she got the letter in the mail saying that “due to inactivity, her account would be permanently closed”. She was in shock. “How could they, I’ve always been a good customer to them”. Dorothy was unaware that Credit Card Management is counter-intuitive.
The truth is, millions have been mislead about Credit Cards. So please don’t feel stupid if you’ve been thinking you’re doing the right things with your Cards but still in massive debt.
Debt Warriors desire to lead you to financial security by informing you of all the counter-intuitive secrets that can help you win your war on Credit Card Debt.
