Banks Want to See Revolving Credit

February 5th, 2010

The card balances of a SOHO business owner got bigger and bigger and they were only making the minimum payments. Mrs A had an Amex card for just about 20 years and never missed one payment. Though technically she didn’t have a limit, she almost certainly couldn’t charge far more than $50,000 in a specific month. In July she had a balance of $20,000 and was nearly prepared to pay it down. All of a sudden and capriciously she received notice her limit was now $20,000 and the interest rate went up 5 points. So while her friendly commercial loans was assessing the credit application, their first reaction was:. It seems like she’s in bad straits and maximising out her credit cards.” It couldn’t be further from the truth.

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