Univeral Defaults
Content Type — blog
I want to go beyond the basics to get into universal defaults so listen up. So many of you are choosing to pay your credit card payments but you are defaulting on your mortgage payments because you feel like you are never going to meet those payments so why not keep up at least with your credit cards because you need your credit card to be in good standing you have to pay for gasoline you need to pay for food, you have to pay for cash advances, so you think by keeping up on those payments even though you are defaulting on your mortgage
doesn’t work that way anymore please listen
This concept known as universal default goes like this you have many creditors, you have car loans, mortgage, credit card student loans, all are creditors all of them are checking for your credit scores and fico scores all the time. If you stop paying for a mortgage payment that shows up on your credit report and that effects your fico score. When you fico score goes down all these other creditors over here see it and they have the legal ability to do what its called a universal default. A universal default is univerally across the line and they can charge you a default interest rate because you were late on a credit card payment. That means a ZERO percent interest rate on a credit card or a 4.9 % interest rate on your credit card they can use the default rate even though you were never late with your credit card payments and go all the way to 21 or 24% whatever the default rate is.
So here is the key
Don’t be late on any of your payments
Because if you are late over here it will effect you over here. You got that!
source: Universal rate credit cards suzeorman.com/