I put together an article about how to repair bad credit in response to your question. I hope you find it helpful and please do contact me should you have any further questions.

You can read the new article here.

Yeah, I think I am better off not transferring the balance and opt-ing out if they decide to raise my rate. I know that is not a great credit move, but neither is a short sale.

I just have to get out of debt, save some cash and hopefully get back into this housing market!

Thanks again…
Mike

Glad if I can be of assistance to you. Here are my thoughts on your situation:

1.) In regard to your rates being raised for making a late mortgage payment, it is unlikely that the credit cards you have opted out of will raise your rates. That type of rate raising is known as universal default, and is not commonly practiced anymore. However, without knowing the complete terms of your opt out, I cannot say NO with any certainty. Thus, I strongly recommend contacting the company, asking them under what conditions they can raise your rates, and requesting a printed copy of your credit card agreement. While I do not think they can raise the rate, I truly cannot say they won’t with any certainty, as it is quite hard to predict the behavior of credit card companies these days.

2.) As to doing a balance transfer, you may encounter two issues. If you are currently late on your mortgage, it is unlikely you will be able to gain approval. If you are able to gain approval, being delinquent by just one day on the credit card account is grounds for an interest rate hike. I really cannot speak to the effect a mortgage delinquency might have, as different banks are utilizing different tools to determine rate increases. However, many are looking at credit score changes, so anything that might lower your credit score may lead to an increase in your rate after the balance transfer period ends, if not during.

Sorry that I cannot provide more specific information, but given the information you have provided, I think the best advice is to cover all of your bases and verify the specifics of your terms and conditions, as one can never be too safe when it comes to managing credit cards today.

Thanks for your offer to help. I will soon be going through a short sale and I have outstanding credit card debt. I am going to pay off my debt as quickly as possible, but have a couple questions.
I have “opt-out” of two cards already – can the credit card company raise my rates if I am late on my morgtage or short sale even though I’ve opted out months ago?
Also, if I transfer balance to another card right now can they typically raise my rate during the promo period if I have gone delinquent on my home or short sale?
Thanks for your help,
Mike

You’re already ahead of most people, who often turn to “bad credit” credit cards. These cards are load with rediculous fees that often eat up your available credit. That said, secured cards are really a good option for consumers who don’t need credit, but want to rebuild their credit.

When choosing a secured credit card, the key factors to consider are the annual fee and, perhaps most importantly, if the company reports your account to the major credit card bureaus. A final factor, which is also quite important if you do not pay your bill in full every month, is the APR.

Based on this criteria, the best secured credit card in my opinion is the Applied Bank® Secured Visa® Gold Card. Presently, this card charges a $50 annual fee, a 9.99% interest rate, and reports to the major credit bureau. It provides all the necessary functions of a credit card along with the option to set your credit limit based on your deposit.