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Simple Path Financial Review: Bad News For Credit Card Consolidation



Simple Path Financial Bad Review

Can Simple Path Financial Be Trusted?

Should you respond to low-interest loan offers from Simple Path Financial and trust that they are the best way to get out of debt without paying? The reviews say otherwise.

If you have been thinking about it and you just received a “too good to be true” loan offer in the mail from Simple Path Financial, SPFSaves, Credit 9, or Tripoint Lending – listen to your gut instinct. Do you really think you qualify for a 3% interest rate? Do you really think that reservation code is especially for you? Are they really planning on flipping you to a more expensive debt relief product? Check Crixeo and find out the truth.

Simple Path Financial BBB
Credit: Oleksandr Nagaiets

Simple Path Financial Reviews on Yelp

According to Yelp, a leading social networking and customer review site, Simple Path Financial has an unimpressive record. They have 1.5 stars out of 5 stars. Simple Path Financial was also mentioned in an article in The Wall Street Journal on August 10, 2019, That Offer to Make You Debt-Free? It Can Make You Worse Off

Higher Credit Card Limits are Like a Double-Edged Sword.

it could be helpful, but it could be just as harmful depending on how careful you are with your finances. If you can afford to fully pay off your credit card bill on time every month, then increasing your credit limit may give you more flexibility and improve your credit by lowering your credit utilization ratio. But if you have a habit of overspending, then a higher credit limit may be a problem or you.

Either way, if you’ve set your eyes on increasing your credit card limit, here are 4 things you can do.

Make a Request Via Phone

Most credit card issuers will only increase your credit limit if you make a request. To start the process, call their number (often posted on the back of your card or the monthly bill) and listen to their prompts. If they don’t have a prompt for increasing credit limit, simply choose the option to speak to a customer service representative and ask for an increased credit limit.

Calling your credit issuer is a good way of finding out what type of credit check they require to process your request. A soft inquiry won’t be evident to other lenders who evaluate your credit report, but hard inquires will be visible for at least one year. Hard inquiries may also temporarily lower your credit score by a few points.  A hard pull on your credit card may matter if you anticipate applying for car loans, mortgages, and new credit cards

Make a Request Online

It is possible to make an online request from your credit card issuer to increase your credit limit. This requires logging into your account and looking for a menu option to request an increase to your credit limits.

Wait for Automatic Increase

Some credit card issuers may automatically increase your credit limit if you handle your credit responsibly. Most credit card issuers will review accounts periodically and raise the credit limits for cardholders who meet their guidelines. You can increase the odds of an automatic credit limit by doing the following:

  • Have a history of paying back in full on time and never asking for payments to be returned.
  • Frequently use the card, this generates swipe fees for your issuer. If you’re not using your card frequently enough, you will have a lower chance of being offered a credit limit increase.

Combine Multiple Credit Cards into One

For cardholders with multiple credit cards from the same issuer, it may be possible to shift part of the credit line from one card to another. This is an easier way of increasing the spending power of one card without the issuer taking on more risk. This can be useful if you want to make a large purchase on a single transaction or if you prefer the rewards or benefits of a specific card.

Another alternative is to apply for a new credit card. This is a great way of taking advantage of new or ongoing cardholder benefits, such as travel rewards programs, welcome bonuses, and 0% introductory APR. This is an easier way of obtaining additional credit once exhausted your credit line.

Why a Higher Credit Limit May be of Help

If you’re good at paying off your credit card issuer on time, a higher limit will boost your credit by lowering you’re your utilization ratio. Credit utilization plays an important role in your overall credit score. Low utilization is a sign that your expenditures are well within your incomes, while high utilization means the opposite.

If you’re spending all of your available credit every month, even if you pay off your balance on time, it could damage your score. It is generally recommended to only utilize about 30% or less of your credit limit.

Increasing your credit limit is helpful if your monthly earnings have increased, as your finances are more flexible. More importantly, a higher credit limit reduces your utilization ratio, which can help with your credit score.

Weigh Your Options Carefully Before Requesting a Higher Limit

Make sure to evaluate all your reasons for requesting a higher credit limit. If you’re looking for access to more financial flexibility or a lower utilization ratio, then it makes sense. But if you need more credit simply because you want to pay off your financial obligations, then a higher limit probably won’t solve your problems and could make things worse.

Here are a few tips to keep in mind before making a request:

Apply when things are looking good

It is a good idea to apply for a higher limit if you’ve just gotten pay raise, have a good credit score, or have a history of being responsible with your monthly bills. If your monthly income has reduced and your credit score isn’t good, it may be best to wait before asking for a higher limit on your credit card.

It May Hurt Your Credit Report

If your credit card issuer starts a hard inquiry, it could reduce your credit score. This is definitely true if you’ve already applied to other lines of credit in the last 12 months.

Beware of Credit Card Limit Increase Fees

Some card issuers will charge you a fee to increase your credit limit. Make sure to ask the customer service representative to let you know what the charges are when you request a limit increase. Some credit cards charge 25% of the increase each time you’re approved for a credit limit increase. If you have these cards on you, try moving on to a better card once you qualify.

Only Apply for an Increase if You’re Good at Sticking to Your Budget

For some people, a higher credit card limit could lead to overspending. Before you request a higher limit, make sure your checking or savings account has enough money to cover whatever you buy before the interest payments kick in.

If you know you’ll be tempted to overspend, skip the request for the higher limit, and try paying with cash instead.

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