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Maintaining credit lines in the recession

Sheridan_Smith
Regular Contributor

Re: Maintaining credit lines in the recession

That's a really intersting article about Capital One  you linked there.  Anyone starting out or starting over should read it and thiink about it.  

 

 

 

Message 11 of 13
Sheridan_Smith
Regular Contributor

Re: Maintaining credit lines in the recession


@Dumbee wrote:

I can't find the article but I read it the other day:

 

Sub prime lenders actually performed better in recovering from the last recession, due to the fact that their clients are usually always in a state of recession.

 

They don't have much of a reason to pull in their lines, since their risk levels haven't increased as much, compared to major/prime lenders. Also, those prime lenders give out much higher limits, so in past financial crisis, those higher limits posed much higher risks if defaulted on.

 

Here's an article about Capital One's sub-prime practices, they make a lot from many borrowers: https://newrepublic.com/article/155212/worked-capital-one-five-years-justified-piling-debt-poor-cust... 


Forgot to quote it.

Message 12 of 13
Jnbmom
Community Leader
Senior Contributor

Re: Maintaining credit lines in the recession

I would just pay in full.

 

But honestly with the limits being on the low end I wouldn't worry too much about them decreasing them.

 

And this is exactly what a pandemic is 😕

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Message 13 of 13
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