Sunday, April 28, 2013

A mistake Washington voters made last November

Congratulations Washington voters... you have decided to lower our credit rating in the easiest possible way by lowering the limit the State can borrow. Higher interest rates, here we come!

For your sanity, you might want to review this:

http://www.myfico.com/CreditEducation/Amounts-Owed.aspx

By lowering our credit limit we have made it so we will have a higher percentage of our State's available credit. This means that we will have a lower credit rating and probably higher interest rates in the near future.

Public announcement:
On a personal finance level, make sure that you have the highest credit score you can be approved for for your existing credit card. This will make you cover a lower percentage of your available credit which will mean your credit score will be higher.

Hopefully we can reverse this legislation ASAP.

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