CREDIT » CREDIT REPAIR & REPORTS

Credit is an amazing thing allowing consumers and business to borrow money based on their past history. It essential to keeping the American economy strong and allowing people to finance their dreams of expanding their business, going to college and buying a home. If used properly having multiple credit cards from different companies is an excellent tool for building a solid credit history, managing the household budget and getting free gifts and rewards.

Every person will have a credit score unique to their situation. This credit score is what makes you look "creditworthy" in the eyes of lenders and will determine the interest rate you will earn and the terms of your loan. Your credit score is influenced by multiple factors including your credit utilization ration. A credit utilization is the amount of available credit you have versus the amount you are using at any given time. By having an assortment of credit cards from different companies, you will have a larger line of credit and as long as only a small percentage of each credit line is tapped into, a great proportion on your credit utilization ratio.

Another reason to have multiple credit cards from different companies is for budgeting and bookkeeping. Consider if you work for your employer and are being sent out of town on a business trip. Your instructions are to pay your own way and then get reimbursed later. If you only have one credit card, you will need to charge all the business expenses and your personal expenses on one card. Not only can that get confusing, but if you are already carrying a balance it can make it harder to manage your finances. However with a separate card for business expenses, you can be better organized by treating the two debts as separate entities.

Companies offer their potential costumers a variety of incentives for choosing their credit cards. By having multiple credit cards from different companies you can earn a variety of free stuff just by using their credit cards. It is best to focus on using one or two credit cards when using this strategy as you will be able to accumulate your favorite rewards more quickly by using the cards more often.

One final reason to have multiple credit cards from different companies is for emergency and safety reasons. Keeping a spare and separate credit card in a safe place can come in handy in situations, such as losing your wallet or needing to tap into your spare credit for an emergency car repair.

The key to handling multiple credit cards from different companies is managing them all responsibly. It is important not to charge more than you can afford, paying off in a timely manner, and making sure to pay all your bills on time.

The world is not perfect, and neither are credit card companies, which might explain why they're increasing fees and decreasing limits in what's affectionately known as "repricing." Of course, the millions of consumers affected by this "repricing" are not readily accepting this expensive imperfection.

Why Credit Card Companies are Raising Rates

So what's going on exactly? Why are companies making abrupt changes such as raising interest rates to as high as 13% from as low as 8%, or lowering limits from $6,000 to $1,000? The reason for these drastic adjustments is not always clear, but points to the need to offset losses from low-performing or defaulting accounts.

It's a tough scenario for consumers who are already struggling to stay afloat in a suffering economy. Luckily, some of the "big boys" are stepping in to try to rectify the situation. For example, The House is working on a bill that will limit credit card abuse. Also, President Obama plans to meet with company heads to address borrower complaints.

How Should Consumers React to Credit Card Companies?

But what do consumers do as they wait for resolutions? The only options at this point are to speak with their respective companies - or as a last resort, give up their card after paying off the outstanding balance.

With these resolutions, the light at the end of the tunnel seems to be glowing rather dimly. This means, unfortunately, it looks like consumers are going to have to get used to expecting the unexpected. Since companies are allowed to lack transparency in their rules, shaky ground may just be the credit card's foundation for a while. If you are currently unsatisfied with your credit cards, you're invited to explore on of our credit card offersto check for lower rates and higher limits. It never hurts to check, especially in this economy.

Do you think President Obama's plans for credit card reform will make it a level playing field for customers?

Having a selection of credit cards is an excellent way to help finance the purchases you desire. Managing the multiple deadlines and their concurrent due dates on a slew of credit cards may seem overwhelming, but you must do it in order to establish a healthy credit history for yourself.

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Why Make Changes?

You may be wondering...

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