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With the current financial crisis - are credit issues more stingy?

Frequent Contributor

With the current financial crisis - are credit issues more stingy?

With the current financial crisis - are agencies issues less credit cards, or lower limits, or worse terms?
Message 1 of 8
7 REPLIES
Moderator Emeritus

Re: With the current financial crisis - are credit issues more stingy?

Besides AMEX?
Message 2 of 8
Regular Contributor

Re: With the current financial crisis - are credit issues more stingy?

I was just approved for a BoA card with my highest CL yet. I guess it depends on the institution. BoA seems to be weathering this criss alright.
Message 3 of 8
Frequent Contributor

Re: With the current financial crisis - are credit issues more stingy?

What is going on with AMEX?
Message 4 of 8
Moderator Emerita

Re: With the current financial crisis - are credit issues more stingy?



ace9848 wrote:
What is going on with AMEX?



They seem to have reconsidered their expansion into non-traditional markets, and they're dumping a lot of newer customers. Those especially affected are those who live in areas with high home foreclosure rates, and those who work in occupations viewed as risky, such as finance and home-building. They also seem to be giving serious stink-eye to their revolving cards (the Blues, etc.)

It will be interesting to see if the start phasing out the revolvers, or if they restrict them to their long-term, high score customers.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 5 of 8
Regular Contributor

Re: With the current financial crisis - are credit issues more stingy?

Most likely they will just raise their underwriting standards. People who would have been approved or gotten better terms previously will be outright declined or given the worst terms.

Really the bean counters know given how lucrative sub-prime lending is how much risk they should take on to outweigh the likely defaults.

This is the worst climate for those in the rebuilding phase. However the standards going up usually just equates to the time you must wait. If 720 is the new 680 then it will delay not stop people from building credit.

It sucks that many will turn to the high fee cards or be stuck with them much longer than usual. I skipped that step myself and went the secured prime bank route and simply waited two years and worked on credit reports. My ignorance of a faster method saved me from sub-prime fee cards. Honestly when I got those in the mail my first thought was how ridiculous the fee's were so I didn't give them any consideration.
FICO TU 730 EQ 731 EX 706
Message 6 of 8
Established Contributor

Re: With the current financial crisis - are credit issues more stingy?



ace9848 wrote:
With the current financial crisis - are agencies issues less credit cards, or lower limits, or worse terms?




In a recent article, I read that 6 credit card issuers announced CLD's because of stricter standards this year. I remember Amex, Discover and Wells Fargo among those (probably because these are the three that I have cc's from). It's not only the banks who had big losses this year, but some credit card companies struggle, too. Just look at the stocks of Discover or Amex and how they did this year.
Message 7 of 8
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Established Member

Re: With the current financial crisis - are credit issues more stingy?

I know when i called Orchard's back door number the other day for a cli, the csr told me that due to the current crisis, most lenders are going to get pickier, and less likely to approve cli's.
 
 I have a perfect payment history with them, even the csr said so, but when you call the backdoor to threaten to cancel, they can only grant one priviledge within a certain amount of time. Well I called back in August to say I wanted to cancel to get out of the annual fee, they removed it. When I called a few days ago, to say I would cancel because I wanted a cli..he tried, but the computer wouldnt grant it, because they had just given the annual fee removal. While i was on the phone he volunteered the info about the crisis and how things are going to get harder...
 
So either they have been taught to say that..or that was his opinion, I'm not sure...
Message 8 of 8