I've been in the financial industry for 15 years. What the average comsumer does not realize is that a credit card account is an unsecured loan. The financial institution does not have any thing to reposess, i.E. Car, furniture, house, etc. When a bank reviews you rates it also looks at how you are using your account. Our there suddenly purchases, groceries, doctors, items that help with your everyday living, eating, sleeping, getting kids off to school. Advanta bank is for business accounts only.
During the life time of having your credit card with a bank have you every paid the balance off in full. Are you with a few thousand dollars of your credit limit. Do you make a $1000.00 payment and then charge $1000.00 during the month. Do you use a convenice check to depost into you checking account and then write a personal check in that amount to pay your credit card bill. Have you always paid you balance in full and now you are only making the minimun payment. How many other open credit card account to do you have, what is you debt to income ratio. Credit card companies appreciate customer who make their payments on time. But there is alot that go into these loans.
A credit card is an aleatory contract; a contract in which the performance of one or both parties is contingent upon the occurrence of a particular event.in other words to use the banks money by signing the card and using it you agree to the banks terms.
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