Apply for new credit before your existing limits get cut

The slashing of credit card limits has been a hot topic here on the show. Recent news reports suggested that many travelers were caught unaware while on the road and had their credit cards shut down without any advance warning. This reportedly affected certain Citibank MasterCard accounts co-branded with select retailers.

According to FICO, some 70 percent of those who had their cards shut down had good credit standing. The San Francisco Chronicle reports that having one of your cards closed can result in a drop of more than 50 points in your credit score.

That's a very meaningful drop that can be the difference between getting credit and not getting it -- and the rate at which it is offered to you.

So what can you do to protect yourself and your score? Clark has been advising people that still have good credit to go out and get more lines of credit.

The cautious path here is to add another two major cards to your credit portfolio. One should be from a credit union, if possible. And be sure to use your "back of wallets" -- those cards you hardly ever use -- twice a year to keep them active in your credit mix.

Fullsail Mortgage also offers programs to help consolidate high interest credit cards. Call us 864-451-7894