I recently received a notice from one of my creditors that my interest rate was set to go up in a few months. It went on to explain that all cardholders (with this particular card) were subject to this rate hike and I had a certain amount of days to opt out and close my account. This particular creditor is HSBC.
What does this mean?
One way or another, my credit is about to be affected and the only reason is because I am a customer. Nevermind that I've never made late payments. It wouldn't matter if I'm current on all other credit lines, never miss payments, or if I have been a great customer for a lengthy amount of time.
Unfortunately, this is not unique to me. This is happening to millions of other people in our country.
What about people who keep that one credit card for emergency purposes only? No real emergencies in the last 6 months? Or the last year?
You could be at risk of losing that account. Well known creditor Discover recently reported that they closed 3 million inactive accounts in 2008 alone.
Is this fair? No.
How do they get away with affecting the credit of tons of undeserving people? Because of the terms and conditions of the credit agreement, that's how! You agreed to the CREDITOR'S Terms and Conditions, also known as their total whim, when you filled out the application.
With so many people clinging to their credit scores for dear life, it seems that all that hard work may not play out the way we thought it would.
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