Universal Default Me? Universal Default You!

What about bad credit score prevention? As in, avoiding bad credit card types. For example, i recently heard a seminar about improving your credit so you can buy homes and one of the speakers mentioned somethign about different credit card types. The kind that is very very common and will increase your APR and charge overage fees and more if you have issue making payments – they also check your credit score regularly and will increase your APR if the score increases!…and another type that is not so common, but it is out there – the type that doesn’t check your FICO to see if they can increase your APR. Unfortunately, i don’t recall the terminology and was hoping you’d have some insight into this better type of credit card that can be used in helping prevent credit card companies from destroying your credit (well actually you should never be in this position, but life happens).

Stephen

——————-

Hello Stephen,

I believe you are describing the Universal Default provision that many credit card companies use to skyrocket your APR.  This credit card company claims not to have a universal default policy unless, of course, you are three days late.  Just so you know, three days is not much of a grace period.  This article outlines what being late means in credit report lingo.

Anyway, the credit card company sets the terms and the consumer must be wise to their strategy and while we’re at it – here’s how to beat the credit card company at its own game.

Thanks for the questions.

Paul