The Economy May Affect Your CC

Anonymous · ‎09-16-2008

I was just looking at the local news NBC5 Chicago they had a special about credit cards. NBC was basically saying if your caring high balances on your credit cards for a long period of time look for CLD cause allot of banks now are just plan scared you might not be able to repay them with the economy being the way it is lately.

This news is not new to me cause i been noticing allot of CLD threads on this forum lately.

They where also saying that allot of banks are changing there approval criteria an it's gonna be much harder to get approved a credit card.

Message Edited by mjbfan79 on 09-16-2008 04:38 PM

haulingthescoreup · ‎09-16-2008

I think we're leading the media in our awareness of the minefields out there these days.

* 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

smallfry · ‎09-16-2008

They might CLD you for not enough usage as well. I like the high limits myself but why would a bank issue a credit limit of 25K if all you're running through the card is 500 dollars every month or so? I plan on hiding under a rock myself.

Anonymous · ‎09-16-2008

smallfry wrote:
They might CLD you for not enough usage as well. I like the high limits myself but why would a bank issue a credit limit of 25K if all you're running through the card is 500 dollars every month or so? I plan on hiding under a rock myself.

I can see a Bank CLD for caring a balance for a long time but a CLD for now using the card is a mess.

Anonymous · ‎09-16-2008

I also heard on NPR, that due to the recent failures and expected failures of more financial institutions that ANY kind of borrowing will become much more difficult.

smallfry · ‎09-16-2008

@Anonymous wrote:

@smallfry wrote:
They might CLD you for not enough usage as well. I like the high limits myself but why would a bank issue a credit limit of 25K if all you're running through the card is 500 dollars every month or so? I plan on hiding under a rock myself.

I can see a Bank CLD for caring a balance for a long time but a CLD for now using the card is a mess.

They will be trying to limit their risk as much as possible. For the average Joe or Jane to stay under 9% utilization each month how large of a credit limit across all lines is really enough? I could get by on 25% of what I have. Even less if I just go back to paying directly through my checking account and losing the 45 days float on the money. These days at 2% who cares anyway?

USC08 · ‎09-16-2008

What would be the longest someone should carry a balance for? For example, $1,300 balance out of a $1,500 CL. 3 months? 6 months?

myFICO - EQ: 776 EX: 763 TU: 791

MidnightVoice · ‎09-16-2008

USC08 wrote:
What would be the longest someone should carry a balance for? For example, $1,300 balance out of a $1,500 CL. 3 months? 6 months?

19 DAYS?

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid

Anonymous · ‎09-16-2008

USC08 wrote:
What would be the longest someone should carry a balance for? For example, $1,300 balance out of a $1,500 CL. 3 months? 6 months?

They didn't really say they just said a long period of time but hey if u can pay it off in 3 months that's better then 6 months.

smallfry · ‎09-16-2008

@USC08 wrote:
What would be the longest someone should carry a balance for? For example, $1,300 balance out of a $1,500 CL. 3 months? 6 months?

Aside from a credit union I wouldn't carry any balances with any issuers now. It looks like you can't pay and are therefore a credit risk regardless of your credit score. BT's are a different matter.