Piles of credit offers come in the mail each week - you get a couple bills, a letter and ten credit offers. Please NEVER apply for a credit offer you receive in the mail!
No business wants to lose a customer, especially a long-time customer. This is true of your credit card company as well. You are far better off negotiating with your current creditor.
Being a long-time customer benefits you. Your credit scores are based on 5 significant factors and hundreds of smaller factors. As one of the most significant factors, your history with a creditor makes up a large portion of your credit score. A long history indicates you are a loyal and dependable borrower.
In financial measurements, long-term planning is good, jumping around shows an indecisive borrower. Playing hot potato with lenders is not a good idea.
Lenders and creditors find it annoying (and expensive) to track down new clients. When lenders see a history of bank hopping they can reasonably assume a customer will not be around long. We have been led to believe creditors only make money from the interest they charge. In reality, every time we swipe our card the lender gets paid – anywhere from $0.11 to 3.5% of the purchase. More history equals more money. To a lender, no history translates to no profit. Lenders exist to make money they will not extend credit to an applicant with no profit potential.
There are further benefits to being a long-time customer. You are more likely to receive “special” consideration from a creditor you have been with for 10 years than the one you have been with for 6 months.
Bottom Line:
History is the measure of your credit score. Loyalty is an important part of our credit history.
There are more factors to review in upcoming articles.
For more info please email intentionalmortgage@gmail.com or call me at 520-861-9701
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