Several Federal agencies are urging cc comapnies to tighten lending standards, raise minimum paymets,run more credit checks and cut back on available credit lines. The story is at www.bankrate.com. Scroll down to about the middle of the page.
Lovely. Just when I reach the point where I can actually apply for and receive credit with an acceptable credit line and interest rate...lol. L
Hmm...I wonder if the irony of having an image of a big honkin' Capital One Platinum Visa with a link to Apply Now! embedded within that same article is lost on the folks at Bankrate... wajaba
I had a feeling this was going to happen, espeically with the passing of the new BK bill. The CCCs want it both ways 1) get people high CLs..so they spend more money = higher interest rates; 2) if they (the consumer) defaults go after them when they file BK. I am not sure whether to blame the consumer for running up the debt or blame the CCC for expecting consumers to actually have willpower when all we see is big homes, flashy cars, and new clothes. I guess both are to blame. Juniper sent me yesterday a change in terms stating that if they pull my credit report and if my credit information has changed they can decrease my CL and increase my interest rate (ha, ha, on them since I don't carry a balance), but even if they did I would cancel the card so fast it would make their head spin. I have a feeling we will see lots of reduced credit lines very soon. I think the days of $10K and 15K credit lines are over. Not to mention that any change in your credit report, new lates, high balances, too many inquiries will increase your interest rate. Dani
Dani, I think it is a sign that officals feel the consumer may well be over extended. The last couple of times Chairman Greenspan has delivered his Humphrey-Hawkins Testimony a Congresswoman from Ohio {I think} has questioned him about high levels of consumer debt. He has always answered with "no problem". I wonder if he'll qualify his remarks this month? Bottom line to me is the consumer finance industry may well be a mature industry for a time. It's hard to grow if you have trouble getting repaid and can't continue to issue fresh credit!
I think that will explain why I haven't been able to get a credit line increase from Target since last year! And, why the cc, even after I call the executive office, won't give me a higher cl than $3k.
"Mature" might be an understatement. I know I will accept all the credit they want to give me, but I will not be using much of it. The "stuff" is going to hit the fan, IMO.
I need a few good cards with decent lines and low interest....the rest can stick it...i also think the days of consumers begging them for credit is over. It's going to hurt the ccc's more than us, they've been making a ton of money.
