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I am curious to know if anyone has received a credit limit reduction from a Credit Union that is not related to a payment/credit issue?
We are seeing across the board CLD from the big banks, but from what I can see, the CU's appear to be business as usual for the most part.
Here is an article on the CLD trend:
http://www.smartmoney.com/spending/deals/Card-Issuers-will-not-Hesitate-to-Slash-Your-Credit-Line/
It is for this reason that I have the past two weeks diversified out to several CU's, as opposed to my history with BoA and Chase. I felt that if things tighten, I don't want to have all my CL eggs in the proverbial CLD basket.
I cannot find any references to CU's having any issues, though a few posts have indicated that NFCU and others have tightened lending criteria, but have not reduced lending or limits.
I'm curious if anyone here has had one?
I am definitely planning to put money with those organizations that provide real value to me. Where I have been "frozen" with the banks, the CU's have welcomed me with open arms and generous CL's.
Currently I have high regard for Alliant and PenFed, and am working on NFCU. Alliant has great deposit rates, and all of those I mentioned have good to great cc/loan rates.
txjohn wrote:
I am definitely planning to put money with those organizations that provide real value to me. Where I have been "frozen" with the banks, the CU's have welcomed me with open arms and generous CL's.
Currently I have high regard for Alliant and PenFed, and am working on NFCU. Alliant has great deposit rates, and all of those I mentioned have good to great cc/loan rates.
@haulingthescoreup wrote:
@Anonymous wrote:I am definitely planning to put money with those organizations that provide real value to me. Where I have been "frozen" with the banks, the CU's have welcomed me with open arms and generous CL's.
Currently I have high regard for Alliant and PenFed, and am working on NFCU. Alliant has great deposit rates, and all of those I mentioned have good to great cc/loan rates.
I do worry that as CU's get flooded with folks looking for safer havens that they, too, will have to start reining in CL's.
It's like finding a great restaurant, telling all your friends, they start going too, and next thing you know, you can't get a table!
Like the old Yogi Berra joke. Nobody goes there anymore. It's too crowded.
As long as CU's maintain credit standards, as opposed to the subprime mistakes made by the bigs, this should not be an issue. In addition, the CU's do not have the profit requirments nor overhead that public banks have. Banks are forever trying to figure out how to deliver increased value to shareholders....meaning increased stock prices and sustained dividends. This means that they have expenses and expectations that CU's will never have.
It is this constant "need" to ever improve profits and return on shareholder value that pushes banks into "creative" lending....something that delivers short term gains with long term consequences.
CU's will never replace the subprime CCC's, because if you have crap credit, no/low income and abuse credit, the CU's won't lend to you. But if you are healthy or on the rise, the CU's have the capacity to work with you in ways that many lenders cannot.
Also, this will help to correct the marketplace. If there is a big enough pull of deposits and borrowing from prime or working on becoming prime, borrowers - then banks will eventually have to compete. Kind of a supply and demand check and balance. Its not instant and takes time for the trends to have effect, but in the long run there can be no other alternative.
Eventually the pendulum will swing and if you are credit worthy, you will go where credit it available on terms that are reasonable. This will eventually begin to form a borrower segment type vacuum.