GREAT READ ON THE FUTURE OF CREDIT CARDS

[Anonymous]

THis is a GREAT ARTICLE. Gives a lot of info that many of us have been predicting would happen. I was able to have lunch with my Banker yesterday and was very interested to chat with him as he has just got back from a 7 day conference on "Credit Card" changes for the bank.

I will be posting about it later, just wanted to post this link. HOPE everyone who reads it finds it interesting.

((PLEASE FORGIVE THE FIRST THREAD OF THE SAME TITLE, AS I HIT THE WRONG BUTTON. Hopefully a Moderator will delete it))

http://www.usatoday.com/money/perfi/credit/2009-09-21-lenders-scores-credits_N.htm

[haulingthescoreup]

NT (no text) post tidied away.

[Anonymous]

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@haulingthescoreup wrote:
NT (no text) post tidied away.

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THANK YOU, just hit the wrong button. That is what happens when I type before my second cup of coffee.

[haulingthescoreup]

I can't tell you how often I've done that. It happens because we're hitting the enter or return button after typing in the subject line, and whoosh, off it goes. It's gotten to where I now type the body of the message before entering the subject line, as I seem unable to break the habit.

Anyway, good article. Interesting how the financial planner whose overall CL has been reduced 68% doesn't seem to know that her EX score is a FAKO!

[Uborrow-Upay]

Dang!  The first (blank) post was a quick read!  lol

A quote from the article:

"Surprisingly, those who pay their bills on time and don't go over their limits are experiencing the bulk of lenders' reductions, industry research shows. These consumers often have a lot of unused credit. By paring back this available credit, lenders are freeing up capital they're required to hold against the loans in case consumers default".

This makes perfect sense (from the bank's perspective), and shouldn't really be a surprise.  We get upset over it because we look at CLD's/closures as consumers who have done nothing wrong.  But the higher-risk consumer doesn't have a lot of limit to begin with, nor the number of accounts...there's not much to cut there...and, the cutbacks have to come from somewhere, so the prime customer is ripe for the picking.

The misreporting of the mortgage modifications is an entirely different matter though.  That needs correcting, fast.

Nice post, DickC!

[Watchmann]

Good article, but nothing really new that we didn't know already.  At the end of the day the way to keep a good score is to pay down your balances so even if you lose some of your CL your ratio is still low.  Unfortunately, most people try to keep their scores up by getting more credit rather than addressing the core debt.  It is evident here on these boards as people troll for ever more credit (which we roundly applaud and congratulate when they get more credit), but very little talk about those who actually tackle the debt and pay it down.  Those are the ones we should be applauding. 

[MattH]

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@Anonymous wrote:

THis is a GREAT ARTICLE. Gives a lot of info that many of us have been predicting would happen. I was able to have lunch with my Banker yesterday and was very interested to chat with him as he has just got back from a 7 day conference on "Credit Card" changes for the bank.

I will be posting about it later, just wanted to post this link. HOPE everyone who reads it finds it interesting.

((PLEASE FORGIVE THE FIRST THREAD OF THE SAME TITLE, AS I HIT THE WRONG BUTTON. Hopefully a Moderator will delete it))

http://www.usatoday.com/money/perfi/credit/2009-09-21-lenders-scores-credits_N.htm

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Here's a report from Experian about how scores are dropping, though it uses their Vantage Score rather than FICO:

Report