Every day, I hear from consumers who are utterly shocked by what can only be described as draconian measures being taken by credit card companies. Some people with good credit scores and solid credit histories are seeing their credit limits cut by 50% or more. Others are being given an ultimatum: close your account or pay double or triple your current interest rate.
Stamford, CT (PRWEB) March 19, 2009
In response to growing consumer complaints about the practices of major credit card companies, SmartBalanceTransfers.com has expanded its blog to provide actionable steps to limit the adverse effects of credit limit decreases, interest rate increases, and the consequences these events can have on an individual's credit score.
"During the past few months, there has been an explosion of consumer complaints that is unlike anything I have seen in the past five years," said Jeffrey Weber, CEO of Credit Card Depot Inc, parent company of SmartBalanceTransfers.com. "Every day, I hear from consumers who are utterly shocked by what can only be described as draconian measures being taken by credit card companies. Some people with good credit scores and solid credit histories are seeing their credit limits cut by 50% or more. Others are being given an ultimatum: close your account or pay double or triple your current interest rate."
"The real problem," Mr. Weber contends, "is less about the revocation of credit, but the impact these changes are having on credit scores. People are not only losing access to credit lines they depend on, but also losing their ability to get new credit or reasonably priced loans."
"One year ago, it was easy for consumers to move their high interest credit card debt to a new credit card via 0% balance transfers. Today, less consumers are able to qualify for these money saving deals."
To aid consumers dealing with credit limit decreases and interest rate increases, Smart Balance Transfers has added an array of helpful articles. Of particular interest for consumers suffering from a recent credit limit reduction is the article, " What to Do When Your Credit Limit is Decreased."
Additionally, consumers looking to make the best out of a bad situation by utilizing 0% balance transfers may find a recent article about the best credit card company extremely useful in determining which credit card company to do business with.
According to Mr. Weber, "Consumers who have been blindsided by a credit card company need to act quickly to preserve credit lines and protect their credit scores. For many, it is possible to turn a huge negative into a positive by taking advantage of 0% balance transfers that can save them hundreds of dollars in interest over the course of a year."
"The key for consumers," Mr. Weber stresses, "is to take action before a credit limit decrease or a credit card closure adversely impacts their credit score. Once this occurs, it may be extremely difficult to get access to 0% credit cards or reasonably priced loans."
About SmartBalanceTransfers.com and Credit Card Depot Inc.
Since 2004, Credit Card Depot Inc has been monitoring the consumer credit card market, providing over two million consumers with detailed interest rate and promotional details on major credit card offers. In 2007, SmartBalanceTransfers.com was started as a means to help consumers find the best deals on money saving, interest free balance transfer offers.
In addition to a credit card comparison section, SmartBalanceTransfers.com also offers a forum for consumers to share their experiences with credit card companies and stay informed about trends in the credit card industry.