E Why You Should Keep A Close Eye On Your Credit

While the federal reserve continues to hike interest rates, the US markets still appear very choppy going into the third quarter of the calendar year. This could be an indication that some investors are still concerned by the potential impact of the rate hike should the economy fail to deliver according to expectations.

Most tech stocks especially the mega players in the market have experienced significant volatility in the last few months. It is hard to tell if they have completely weathered that storm yet. On the other hand, the price of oil currently cannot maintain a smooth curve while the cryptocurrency market continues to woo speculative investors.

All these are major forces in any economy and given the level of their unpredictability, it is hard to tell whether the continuous hiking of interest rates will do the US economy any good.

The credit market has also exhibited signs of concern over the last few months after slowing significantly in April. In March 2017, consumer credit came in at $19.5 billion, but in April, it slowed to just $8.2 billion following the rate hike in March.

It is unclear whether the increment was the main factor behind that slowdown, but with lending rates also rising in tandem with the Funds Rate, it is a sound hypothesis to make. With these rapid increments, consumer credit scores could be affected if not monitored for readjustments especially for those on floating rates.

Conclusion

In summary, there are several factors that can affect the credit score. Some of them are tied to the economy and the overall lending market while others are purely tied to personal spending and sustainable income.

However, it is also good to remember that a person’s credit score can be affected if personal information and credit card details are stolen.

Therefore, it is always good to keep an eye on your credit score to make sure no surprise expense items on your next credit card statement.

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Disclosure: The material appearing on this article is based on data and information from sources I believe to be accurate and reliable. However, the material is not guaranteed as to accuracy nor does ...

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Comments

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Danny Straus 4 years ago Member's comment

Does getting your credit card stolen affect your credit score if it's been reported? Or only if your identity is stolen?

Maithya Kitonyi 4 years ago Author's comment

If your credit card information (including your identity) is stolen and you are unaware of it. Someone else could be spending on your behalf without your knowledge. That could affect your credit score. So it's always good to keep a close eye on your statements and alerts if linked to your phone or email.