What to do when your bank freezes you

You could have great credit and a stellar payment history, but don’t take it forgranted. A payment that is one day late could cause problems if you have a home equity line of credit.

In fact, I recently had a client call me in a panic. His bank froze his substantial line of credit, funds he was relying upon while in between jobs. When I looked into this, I found out why: he had one late payment on his mortgage for the first time in his life.

This just demonstrates how bad it is in the banking industry. If they sense any sort of financial distress, they will take swift action. This client even had a high credit rating and long-term relationship with the lender.

Here’s the bottom line: banks and lenders just want to get paid…they are not looking to be your friend!

They could also raise your interest rate if you start making late payments-even one or two days late.

Banks are running scared. What you need to do is pay your bills on time…every time.