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How can I find out if CC can increase my rates?

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What is the name of your state? CA

I'm currently up to date with all payments, from mortgages to credit card payments. However, starting in July I'm going to stop making my mortgage payments, and in a few months do a shortsale (wife lost her job).

My concern is the effect that it might have on my credit cards. I have a couple of small credit cards that I'll be able to pay off by not paying my mortgage, however, I do have two huge credit card balances that total about $50K, however I did balance transfers/cash out so I'm actually only paying 3.9%. I'm making only the minimum payments and because the interest is so low, I'm reducing principle all the time, and my minimum payment every month always drop by like $10. So while $50K is alot, I can have it paid off in a couple years, especially if I don't have a mortgage (approx $3000+ a month vs renting at $1000 mo)

So the concern is that the credit card companies may look at my credit and see that I'm behind on payments / short sale, and because of that would reset my % to like 18%. I heard about how some credit card companies are monitoring their customers credit and if they see something that would indicate they are higher risk, then they reset their rates?

Do I have anything to be worried about, or since I'm only missing mortgage payment and not credit cards, I'm comparing apples to oranges, and as long as all my credit card payments are on-time, then I have nothing to worry about?
 


justalayman

Senior Member
Do I have anything to be worried about, or since I'm only missing mortgage payment and not credit cards, I'm comparing apples to oranges, and as long as all my credit card payments are on-time, then I have nothing to worry about?
many cards give notice that they can alter the rate anytime for any reason. Your failure to pay your mortgage and the resulting credit score drop most assuredly would raise you interest rates if this is allowable by your contract with them.

To determine if they can, you need to consult your most current contract with them.
 

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