Can Your Credit Be Too Good?


Probably not if you look at it from a personal perspective. Good credit offers you peace of mind, security and more but?.

Your credit can be too good to get a credit card these days.

Card issuers have counted on profits for years from penalty fees and high interest rates paid by the consumers who carry a balance. But the recent recession and the CARD legislation has forced a decline in profits from this source. The industry has had to write off billions of dollars of bad debt and the new Federal laws have seriously curtailed how much credit card companies can charge risky customers and how they can randomly increase interest rates.

If you are a customer who owns a credit card but pays off the balance every single month to the credit card companies you are essentially a ?deadbeat?, not because you ever fail to make your payments but rather because the credit card companies are not making any money on you. You are worthless to them. No need to give you a card.

And people with stellar credit have been denied credit cards for that very reason.
A recent lawsuit brought by outdoor retailer Gander Mountain, from Minnesota, claims that the credit card partner they affiliated with, World Financial Network, was turning down shoppers who had nearly perfect credit scores of 800 and above. The issuer claimed that it could not make money from those clients and those clients comprised as many as a quarter of the new applicants.

Sounds like with credit these days, you may be damned if you do and damned if you don?t too.