If you are young and have ever tried to get a credit card, bank loan, auto loan, or some other form of credit you have undoubtedly encountered rejection. You have probably also encountered one of life’s paradoxes: it’s nearly impossible to get credit if you do not already have credit. There are, however, a few things that you can do to overcome your credit struggles…
Whenever someone “checks your credit” they are essentially putting a notation on your credit history. Some of the “notations” can have adverse effects on your credit score, while some will not.
A soft credit pull, as you may have guessed, won’t have any adverse effects on your credit score. Some examples of soft credit pulls include a creditor periodically checking you credit, or a credit counseling service checking your credit (with your permission, of course)
Universal default is a clause that is often tucked away in the fine print that says credit card companies can raise your interest rate if you are late on a payment…to any creditor. Yes, you read that correctly. The universal default clause allows a credit card company to raise your interest rate if you are late on a payment to any creditor, not just the said credit card company.
Universal default may take effect if you are late on almost any payment. Payments ranging from mortgage, auto or bank loans, even phone, cable and utility bills. You may also be at risk if the bank “thinks” that you are a credit risk. Some other events that may trigger the universal default clause include making too many credit inquiries, maxing out a credit card, or even using more than 50% of the credit line on a credit card.
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