Are Banks Finished Robbing Credit Limits?

[DI]

Banks are at it again.

[fused]

At some point, the banks will have to start extending more credit. Our whole entire economy is based on debt, which is really money. If banks cannot create more debt, I expect them to nickel and dime us far more than they already have, but guess what, I ain't gonna let them do it to me.

[armywifey85]

I've decided to carry a couple credit cards with USAA/NFCU and Military Star thats it I don't plan on using them except for hotels , car rentals. I'm not charging anything to credit cards except monthly memberships like onstar/credit monitoring etc no more than 50.00 between all of them. Most hotels and car rental places require a credit card to reserve but I will pay in cash at checkout. Don't rely on those credit limits put all the extra into savings and borrow from yourself and ya know its there unlike a credit line. I've started allotments to 2 savings accounts one for car repairs/house repairs and one for reg saving. I'm not gonna worry about this economy or credit climate worry me the banks are still loaning for autos and the rates are real good right now I've got my house and Auto I don't need to borrow anything im gonna try and pay extra to those instead of shopping.

Just ride out the storm. 

[armywifey85]

They issue new card/credit with higher int rates to make more money those new card holders are taking those new cards with higher int rates therefore making that bank more money.

[armywifey85]

Why do you think all those people gave money to Madoff ? To make more money on their money and did'nt make nothing and lost it all. Banks make more money off people that carry a balance and pay an annual fee. Thats why they are gonna start charging and annual fee just sit back and watch them in action by the end of Jan a lot of yous will be paying even if you don't carry a bal.

[armywifey85]

The banking lobby has no choice President Obama said he was gonna put a stop to that or try to. Looks like the banking lobby lost two rounds the consumers are up by 2. Now the banking lobby are rolling up their sleeves and pulling all the tricks outta the bag. I don't think they like to lose.

[armywifey85]

If we don't spend and have debt they go outta business and jobs are gone. I don't expect the auto industry to make it without selling or merging. The only one I think will still be around is Walmart and Mcdonalds.

[Anonymous]

Regarding the original topic question, analysts who wrote about the overall CL reductions (which we have been seeing for the past year) projected that it would continue into mid-2010. A large amount of available unused credit is helpful to consumer Fico scores, but it is a big risk factor on banks' balance sheets - especially BOA and Citi, who had the weakest balance sheets to start with.

While it may seem that new accounts are simply replacing the credit chopped from existing accounts, that is not the case. Overall, credit limits have been significantly reduced during the past 12 months. I bet $5-$10 of existing CL is cut for every $1 of new CL granted these days ...