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Do It Yourself Credit Repair - Why Banks Don’t Love You, They Love…

…Your Bad Credit Score.

They are there to maximize shareholder value. This has to happen at your expense because they are not expansive abundance minded thinkers and dreamers.

If banks aren’t writing off bad debt, shareholders get grumpy.

Why is this?

Because sharehorlders want to maximize the value of their shares. Nothing revelatory there. So to do that for banking stocks the best way is to increase profits and then possibly reduce expenses.

So how do banks increase profits?

By targeting you and charging the higher interest rates they desire. Banks do lend to good credit people but that is almost an afterthought because they are "less desirable" than bad credit people. This seems counter intuitive but it's not.

They know their "numbers" meaning they realize that some of these high credit (aka higher risk) loans will go bad. They know what credit score range to lend in and what percentage of the loans in that range will go bad and have to be charged off. Usually when it's charged off that just means it is sold to a debt collector.

I know this because I went through the debt collection process in 2002. Unpleasant for sure.

So banks compete fiercely for credit risks and bad credit people. The credit card industry is notorious in many ways and especially for this. In a way it is good for rebuilding credit after a period of drop or even devastation. The new extremely high rate card if used properly, by paying on time and keeping the balance low, has a positive benefit on your score and your overall credit report.

Those offers for a credit card that is "secured" or charges an obscene rate, ridiculous annual fee, and monthly maintenance fee are very prevalent and continue to grow in the marketplace. Banks are reacting to what their shareholders demand as well as the growing credit problems in the marketplace.

As more people are running into credit trouble, bankers and shareholders see increased $$.

Get off the creditor/indebtedness treadmill. The American system today is designed to keep you the consumer in enormous debt. The debt load eats up most of your earnings and buying power and quickly spirals out of control.

This is the system the powers that be wanted. And it has come to fruition now. So be one of the ones that gets out of this mouse in the spinning wheel situation. Step out of the spinning wheel and start building your financial future.

For more info on how to do this visit the site below.

Article Source: http://www.articlemap.com

Alexander Alaric-halts the high interest rates that destroy you. Stops the embarrassment, the disappointed head drop from your banker, and the pain of unreachable home and car dreams. www.creditrepairmastery.com

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