Re: Barclays Did It Again...An
other Payment Hold...
10-02-2012 11:43 AM
i agree with everything about, but would like to add:
I see the biggest issue here is you never pay the card off in full, you just make a payment and max it back out... it looks like you are basically financing your life with this card and making payments when you have the funds available, and then maxing it out again. so from the lenders prosprective what happens when the pay checks stop coming in?? they are on the hook for the full amount of the card charged off
do you have any cash on hand at all? do you have any other cards?
why not just use the cash you have or other cards until you PIF this one and then start using it again?
TheConductor wrote:I can understand any financial institution that loans someone money is taking a risk, but if I am such a risk, why did they increase my credit line from 1700 to 3500 after nine months of use. I must have been doing something right.
Just because you were doing something right, that doesn't mean you were doing everything right.
Sometimes a pretty girl goes home with a guy she met at a bar, even though he has bad garlic breath from the Olive Garden dinner he had earlier, because he's cute and has a nice smile and wasn't rude to her friends. That doesn't make him the world's greatest seducer, it just means he ticked enough positive boxes for her to look the other way in the short term.
It also doesn't mean she won't kick him out of bed if he didn't bring a condom. She'll take a small risk on the bad breath, but not THAT big a risk.
What I am sure they expected is that once they gave you the CLI, your spending would settle down and fit within what they calculated to be a reasonable level well below your CL. Now that instead you are continuing to push the envelope, they are looking at your past BK and going "Hmm...this guy seems to be repeating the spending patterns that got him into BK in the first place."
You seem to be in an awful hurry to be doing everything right. But you are recovering from a bankruptcy and there is no quick fix for that. It's a slow healing process that will require patience and discipline.
I was perplexed by the fact that you are cranking so much money through an Apple Financing card, which has no rewards apart from the 0% on Apple purchases. Then I realized why you are doing it: I suspect you are laboring under the misapprehension that the more money you crank through the card, the more profit they make. And the more profit they make, the faster they will upgrade you to better limits.
There's a fallacy in that logic, though, because their whole business is one of volatility. The volatility is in the fact that they are effectively in the business of making unsecured loans, over and over. They maximize their profits not by loaning as much money as possible, but by loaning as much money as possible with as little risk as possible. The marriage of the two principles is what matters - neither can stand alone.
If, say, since your CLI and for the next 6 months or so, you were to crank no more than $1700 per month through that card, and PIF with a single payment each month, then I am betting your next CLI at that point could be to a nice 8k, 9k, or even 10k.
If you continue in the way you are going, however, you may spend 2 or 3 times as much over the same 6 months, but that spend will come with all the signs of volatility. They will be wary of you, and if you get another CLI at all it is likely to be modest and disappointing.
There's a reason folks on this board often compare creditors to sleeping bears or lions. The way to behave with them is tread lightly and seem as non-threatening as possible.