August 25, 2009

Bye Bye Universal Default

Filed under: Universal Default

Hi Paul,

If I short sell my house will it effect my current credit cards. I heard that if I short sale and get a negative mark on my credit report, my current credit card creditors can raise my interest rate and or decrease my line of credit.

Mary

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Hi Mary,

The Credit Cardholder’s Bill of Rights of 2008 went into effect and Universal Default on existing balances is now outlawed.  If the rates do increase then there must be a 45 day wait and it can only be applied to new balances.  Credit lines can always be decreased by the creditor.

Thanks for the questions and hope this helps.

Paul

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