cancel
Showing results for 
Search instead for 
Did you mean: 

U.S. credit downgrade and variable rates on credit cards

tag
poet
Regular Contributor

U.S. credit downgrade and variable rates on credit cards

OK, it's a bit early to tell, but has anyone got any insights into how card issuers might stick us with higher interest rates? Would they do it based on length of account, CL, scores, what? And how much? At this point, even a 1% increase would cause serious, serious problems. We're scraping along as is.

 

credit.com quotes Faux News quoting Lynne Khalfani-Fox as saying it would only affect new purchases, not existing balances. (7/30/11)

 

Robert Recih writes in Wall Street Pit that S&P has a lot of nerve telling the U.S. what to do since it failed to exercise oversight that led to the feds bailing out sleazy banks. (8/6/11)

 

I just wanna know if I'm going to be able to pay off the cards whenever my student loan comes through. Smiley Surprised

 

Yeah, I think I'm pretty well over credit cards at this point. I don't see becoming a 100% cash-only person, but I do think that I'm ready for one good card and no more store cards... but that'll take a few months.

 

What are y'all feeling like under the circumstances? Are you considering closing some of your store cards? Any ideas as to how one might get a really good CLI on one's main card (for emergencies only)? Are you sockdrawering these days? Robbing Peter to pay Paul? Throwing everything you can at your existing CC debt? 

 

I know that I'm not buying anything on credit except monthly subscriptions to a couple of digital newspapers/magazines. I'm not buying anything but gas and groceries.

 

 

 

 


Starting Score: 550
Current Score: 673 EQ, 681 TU, 650 EX
Goal Score: 720

Update April 1: TU 615/EQ624
Update June 28: TU 641/EQ 626
Update Sept 21: TU 681, EQ 673, EX 650 (FAKO)
I FINALLY got that car at the rate I wanted! Thanks, FICO Forums!

Take the FICO Fitness Challenge
Message 1 of 3
2 REPLIES 2
laz98
Senior Contributor

Re: U.S. credit downgrade and variable rates on credit cards

we are just dealing with things as they come.  not panicking, but not sticking our heads in the sand, either.

Message 2 of 3
Wolf3
Senior Contributor

Re: U.S. credit downgrade and variable rates on credit cards

Interest rate changes require notification in advance and are not retroactive to current balances.   Only new charges.

 

Sockdrawer the store cards but don't cancel them.   Use occasionally for things you need.   In the future their age will be a big boost to your credit.

 

I suggest you develop a large CL on one main card, by running all your expenses through it.  Pay it off each month or more often based on your CL.   Over time it should grow.    What major cards do you have now?

Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.