How Your Address May Be Affecting Your Credit Score
We all know lots of factors can impact your credit score. It’s common knowledge that how much credit you have and when you pay your bills can have an effect.
But, MSNBC today had a shocking story from a man in California who says his credit is being reduced simply because he lives in California. It’s almost hard to believe, but the story says:
“Paul Smith, 62, lives in Otay Mesa and has been a San Diego resident for the past 30 years. … Paul said he called HSBC and spoke with a customer service representative who identified herself as Lisa, who “told me that the reason [his credit limit] was cut back was due in part to the financial situation in California. Also in Nevada, Florida and Arizona.” “
What? Could it be that consumers with good credit are being penalized because of an entire state’s economic problems?
If the amount of credit available to you is reduced your credit score be lowered. This could lead to a credit card company taking further action and raising your rate.
This is the first report, but more may be on the way. In the past few months we’ve seen credit card companies make some major changes to the way they do business. New laws and a changing economic landscape are forcing them to re-think how they make money. Unfortunately, the new business plans aren’t always good for customers.
Has anyone else out there seen their credit reduced because of their state’s economy? If you want to stay out of credit card debt and filing Chapter 7 bankruptcy, you’ll want to watch this story closely.