Oct 28 • 💳 Credit Corner
Did You Know Credit Card Limits are Often Listed Incorrectly on Purpose?
One of the dirtiest tactics used by credit card issuers is to report no credit card limit to the credit bureaus. This is to prevent competitors from stealing their good low-risk clients and offering them competing credit cards. Since 30% of your credit score is decided by credit utilization, this can hurt your score considerably.
How? When NO credit limit is reported, it means if you charge $1.00 on that credit card you are over the credit limit. If you charge $1,000, you are way over the limit. See the problem? We see this more often than you might expect when reviewing clients credit reports before applying for 0% business credit cards.
You need to get a copy of your credit reports and verify your credit limits are being reported correctly.,
If you find no credit card limit being reported on your credit file, you must contact the credit card company. Get them to report your correct credit limit. Once updated, you will see your credit score increase significantly.
Another note. We sometimes see incorrect credit card “length of credit history” being reported. Meaning a card you have had for five years reporting it was open two years ago. Please review your credit report for inaccuracies. It makes a difference.
3
0 comments
Did You Know Credit Card Limits are Often Listed Incorrectly on Purpose?
skool.com/a-resourceful-palace-6621
Our mission is simple: empower financial professionals to grow profitable, compliant, and community-centered businesses with the help of VAs‼️
Powered by