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Should you pay off your credit cards during foreclosure or pay them down?
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What happens to existing credit cards after foreclosure?
During the foreclosure process, there will not be adverse effects to a homeowners' credit cards if all are paid on time. If they fall behind, of course, they will have even more damage to their credit scores, and may face severely negative consequences from creditors. However, simply being in foreclosure itself will not cause homeowners to lose their credit cards or have interest rates increase or extra charges added. Many credit card companies issue contracts that state that the company may be able to raise interest rates on the card even if the borrowers never miss a payment on *that* line of credit. If they miss a payment on any *other* credit card, said company may raise rates. Even if a credit card is with the same bank as the mortgage, there is little that a mortgage company can do if a borrower's credit cards have not gone into default. However, after a foreclosure has ended, and despite the fact that some owners may have been able to stop foreclosure, there will be severe damage to their credit reports from the late mortgage payments and/or foreclosure. Such homeowners should be careful not to close out any credit lines that they may plan on using in the future. Because of the damage to their credit rating that late mortgage payments or a foreclosure will cause, it will be difficult, if not impossible, to qualify for new loans or credit lines with competitive interest rates for years after facing foreclosure. Unless the homeowners voluntarily close their accounts or fall behind on the payments, the credit card companies will not do very much at all before, during, or after the home foreclosure process. The companies have no reason to take any negative actions against the borrowers just because they are facing foreclosure on a property they own. In fact, as long as the homeowners can keep on top of their credit card payments, they may try and request a higher credit line during foreclosure to be able to use some of that money to get back on top of the mortgage, although >>this is not a very sustainable solution<<. On a somewhat unrelated note, just as homeowners who have Home Equity Lines of Credit on their properties and have had access cut off, credit card customers may also see companies start to decrease the total available to borrowers. Banks are beginning to realize that there may be a larger risk of default in consumer lending and are taking defensive actions to limit access to credit for debtors in the greatest danger of falling behind. So, before facing foreclosure, homeowners may want to consider cutting up their current credit cards and getting used to a life without borrowing money, since their lenders may cut off their access soon anyway.
How many credit cards should you have to build credit?
Number of credit cards do not matter, what matters is your payments. As long as you pay in full every month and don't go over 30% on your credit cards you should see maximum results..
Will credit card accounts in good standing be affected by a foreclosure?
That is a yes and no answer. No, the accounts won't be affected immediately. Yes, later they will. Ok, you won't lose the cards because of the foreclosure but as the credit card companies do run periodic checks on your credit you may find that they may lower or remove the credit line until such time as they feel safe to let you charge again.
How do credit cards build credit?
Credit cards aid to build credit history in the same manner that any debt, whether it is from purchasing a car or by just paying rent. Be responsible with credit cards. You should not overspend.
Where can I get instant credit cards for bad credit?
It may be possible to get a credit card with bad credit, but the terms will be unfavorable. You should work at rehabilitating your credit rating before applying for credit cards.
Why most Americans should not have credit cards?
Why most Americans should not have credit cards.
What happens to existing credit cards after foreclosure?
During the foreclosure process, there will not be adverse effects to a homeowners' credit cards if all are paid on time. If they fall behind, of course, they will have even more damage to their credit scores, and may face severely negative consequences from creditors. However, simply being in foreclosure itself will not cause homeowners to lose their credit cards or have interest rates increase or extra charges added. Many credit card companies issue contracts that state that the company may be able to raise interest rates on the card even if the borrowers never miss a payment on *that* line of credit. If they miss a payment on any *other* credit card, said company may raise rates. Even if a credit card is with the same bank as the mortgage, there is little that a mortgage company can do if a borrower's credit cards have not gone into default. However, after a foreclosure has ended, and despite the fact that some owners may have been able to stop foreclosure, there will be severe damage to their credit reports from the late mortgage payments and/or foreclosure. Such homeowners should be careful not to close out any credit lines that they may plan on using in the future. Because of the damage to their credit rating that late mortgage payments or a foreclosure will cause, it will be difficult, if not impossible, to qualify for new loans or credit lines with competitive interest rates for years after facing foreclosure. Unless the homeowners voluntarily close their accounts or fall behind on the payments, the credit card companies will not do very much at all before, during, or after the home foreclosure process. The companies have no reason to take any negative actions against the borrowers just because they are facing foreclosure on a property they own. In fact, as long as the homeowners can keep on top of their credit card payments, they may try and request a higher credit line during foreclosure to be able to use some of that money to get back on top of the mortgage, although >>this is not a very sustainable solution<<. On a somewhat unrelated note, just as homeowners who have Home Equity Lines of Credit on their properties and have had access cut off, credit card customers may also see companies start to decrease the total available to borrowers. Banks are beginning to realize that there may be a larger risk of default in consumer lending and are taking defensive actions to limit access to credit for debtors in the greatest danger of falling behind. So, before facing foreclosure, homeowners may want to consider cutting up their current credit cards and getting used to a life without borrowing money, since their lenders may cut off their access soon anyway.
How many credit cards should you have to build credit?
Number of credit cards do not matter, what matters is your payments. As long as you pay in full every month and don't go over 30% on your credit cards you should see maximum results..
Will credit card accounts in good standing be affected by a foreclosure?
That is a yes and no answer. No, the accounts won't be affected immediately. Yes, later they will. Ok, you won't lose the cards because of the foreclosure but as the credit card companies do run periodic checks on your credit you may find that they may lower or remove the credit line until such time as they feel safe to let you charge again.
How do credit cards build credit?
Credit cards aid to build credit history in the same manner that any debt, whether it is from purchasing a car or by just paying rent. Be responsible with credit cards. You should not overspend.
Where can I get instant credit cards for bad credit?
It may be possible to get a credit card with bad credit, but the terms will be unfavorable. You should work at rehabilitating your credit rating before applying for credit cards.
How can i find out if deceased father had credit cards?
Get a credit report on him. Try https://www.annualcreditreport.com/ or www.equifax.com/ and a list of his credit cards should pop up.
What are the Repercusions of foreclosure?
My own home is in foreclosure (I am currently in the process of getting it out) and I can tell you from my own experience what the repercussions I have seen are. * My credit score is terrible (low 500's). It had been good (700's) before my foreclosure. * I cannot get any loans or credit. * The interest rates on some of my credit cards has jumped significantly. From the research I did, I found estimates that you would not be able to buy another home for 4 to 7 years. It stays on your credit report for at least 7 years.
The late fee penalties on credit cards are too high and should be lowered.?
The late fee penalties on credit cards are too high and should be lowered.
Should you make payments on some credit cards if you cannot on all cards?
yes.
What is the process for repairing your credit after a foreclosure?
The very first thing is to pay all your bill's on time or a little earlier if possible. And you can get one of those credit cards where you pay in advance and that will build up your credit. You want to build your credit back up. And it does take time. Be patient.
I filed bankruptcy for my credit cards my wife has her own credit cards in her name am I obligated to pay her credit cards also when we get a divorce?
If your name is not on the account, and the account is not considered a "joint account" by the credit card company, then you should not be held liable for any debt on your wife's credit cards.
