Why Retail as
Opposed to National?
There is a school of thought among many people who have debt
that if they are going to default on a credit card that they
should default on a store card as opposed to a national name
like Visa or MasterCard. They believe that somehow this debt is
not as important as that debt that is held with the larger
corporations. They think that American Express has the ability
to come after them for their delinquent accounts whereas maybe
Fashion Bug does not.
However, for anyone that is looking at defaulting on their
credit card, it is important to realize that all of these cards
are weighed the same when it comes to your credit accounts. They
do not break it apart by smaller companies and larger companies,
they look at the accounts that are not being paid and they say
that they are all of equal standing and if you are defaulted on
one then you are looking at a black mark on your credit history.
The credit companies such as TransUnion or Equifax do not care
if your card is Visa or JC Penney’s – they look at it as an
account that has not been paid and you are marked down for it.
If you are getting into trouble and are not able to make all of
your payments because you are a little short, you are
going to want to rethink the default idea and look into
something more like a debt consolidation that will lower your
monthly payment so that you don’t have to make all of those
payments each month. By getting the debt consolidation you can
pay off your credit cards in full and then pay down your debt
consolidation loan. The payment will be less and for a set
period of time, and most people pay off their debts between two
and three years – leaving them debt free.
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