Credit Card Information: The Vicious Credit Card Cycle (VCCC)

In these difficult economic times millions of people are reassessing their credit card situation.

Less than 15% of the United States population has a FICO credit score of over 720. This score is REQUIRED if you are attempting to get a loan or mortgage that is well under “criminal usury”. Having a credit score over 720 allows you to save hundreds of thousands of dollars throughout the lifetime of your home loan and/or auto loan.

When people turn to the internet to help solve their credit problem they will find an endless supply of high interest credit card applications from banks that do not have their financial success in mind.

In fact, it is almost impossible to dig yourself out of a credit card debt when you accept a credit card from an offer that has a “snap-up” interest rate:

Zero percent interest for 6 months!!!

These offers are designed to suck you into an unsecured loan. They encourage you to max out your card past the 30% recommended utilization rate required for FICO (Fair Isaac Database) to raise your credit score. Unfortunately, most people have NO IDEA that 30% above utilization will prevent you from getting good grades on their “Credit Report”.

There is huge quantity of disinformation about credit card repair and debt management. This bad information will only compound the vicious cycle of increasing personal debt causing people to apply for still more high interest credit cards.

The Vicious Credit Card Cycle

Here is the Vicious Credit Card Cycle (VCCC):

Phase 1: Apply for “snap-up” unsecured credit card offer, zero interest then 24% after 6 months

Phase 2: Receive unsecured credit card and max out the “utilization rate” to 90% by purchasing home entertainments systems and clothing.

Phase 3: Repeat Phase 1 and 2 for up to as many as 8 high interest credit card offers.

Phase 4: Apply for a Home Remortgage offer that pays off the unsecured credit card debt but generally ruins the amortization interest rate of their current loan. (This is becoming more and more difficult because of recent insolvency issues with American banks). This lowers the amount of money that a family can put into a savings account.

Phase 5: Default on several unsecured credit cards while spending any remaining savings to meet minimums on high interest credit card payments. (This will lower or ruin your credit score (FICO).

Phase 6: Apply for Bankruptcy for Debt Management in order to organize and survive the massive financial burden created by unsecured spending. (Called “living above ones means”).

Phase 7: Seek out Credit Repair service or other financial advice.

We Can Help

Do you recognize yourself in any of the above phases?

No matter where you find yourself in the Vicious Credit Card Cycle, Credit Help Info will assist you in your search to find better information on each of the stages.

Check out some of great info on our site:

Credit Card Application

Need help finding a credit card that meets your needs? Our credit card application area can put you on the right track to getting the credit card that meets your need AND your financial goals.

Debt Management

Having taken the first steps into crafting your credit history, folks often find they need a bit of help. We have the resources to help you get a grip on your finances and help you manage your debt.

Credit Repair

If you find yourself in a situation where circumstances beyond your control have caused your credit history to take a hit, we can put you in touch with folks who can help you get back on track with a credit repair service.

We look forward to your financial success.

The Credit Help Info Team