CHESSNOID

I just got a comment from a reader that made me realize most people believe what all the experts say.  Even when all the experts were wrong about the housing crisis, the recession, the banking collapse, the bailouts, and the foreclosures.  The comment Joe made is that everyone else has to pay for the credit card delinquency or default of others.  This is simply not true.

If you have perfect credit, then you will always be able to get favorable terms.  You will get the market interest rates or promotional 0%  interest rates.  There are no exceptions if your credit qualifies for those programs.  You simply don’t pay more just because the rest of the population defaults.

Another example is most basic credit cards have grace periods.  If you pay off your balance every month, then you simply pay no interest charges.  Is it that simple? Yes, it is that plain and simple.

Financial experts have touted that costs go up from defaults is simply crap.  Your credit score and profile determines what you will pay interest wise.   That is with the assumption you use credit cards to begin with.

And one final note on credit scores is that credit card companies do not always use them.  Nor do they always employ your credit profile.  Sometimes they look at a credit card portfolio of perfect paid customers with over 10 years of credit history and cut their credit lines or cancel their cards.  I know this from personal experience and you can read over the 200 comments on my original American Express blog post from over 2 years ago.