Those with high FICO Scores will suffer...

[BBYGRL]

We suspected this...I thought I'd share nonetheless. According to a news article this morning...

"Even if you have a high credit score and a blemish-free payment history, your credit limit may have been cut. American Express recently cut the credit for 10% of its cardholders, but most banks have reduced credit limits for some customers since last summer."

That sucks!

[Anonymous]

Not withstanding AMEX, I don't think that is a true satement. I think (hope?) most banks, assuming you have a long and clean history with them, will leave you alone.

[Takunda1]

It's no longer about your history with that particular company, today its about your history period. Most companies are now using the "potential for bankruptcy" model to determine where the highest risk lies.  Amex may be doing it more than other banks because of their market share, but a lot of banks are doing it too. Most have chosen to stop CLI.

[MidnightVoice]

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BBYGRL wrote:

We suspected this...I thought I'd share nonetheless. According to a news article this morning...

"Even if you have a high credit score and a blemish-free payment history, your credit limit may have been cut. American Express recently cut the credit for 10% of its cardholders, but most banks have reduced credit limits for some customers since last summer."

That sucks!

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But a high credit score and a blemish-free payment history is still better than a low credit score and a blemish-free payment history which is still better than a low credit score and a blemish-full payment history. 

[Anonymous]

A 750 score, very high "UTL mortgage debt" and in a specific zip could trigger a CLD with Amex I might guess.

[BBYGRL]

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MidnightVoice wrote:

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BBYGRL wrote:

We suspected this...I thought I'd share nonetheless. According to a news article this morning...

"Even if you have a high credit score and a blemish-free payment history, your credit limit may have been cut. American Express recently cut the credit for 10% of its cardholders, but most banks have reduced credit limits for some customers since last summer."

That sucks!

---

But a high credit score and a blemish-free payment history is still better than a low credit score and a blemish-free payment history which is still better than a low credit score and a blemish-full payment history. 

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You said it better than I ever could MV.

[marty56]

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cobra19 wrote:

Not withstanding AMEX, I don't think that is a true satement. I think (hope?) most banks, assuming you have a long and clean history with them, will leave you alone.

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I have been hearing about small companies are still doing mortgages to people with good credit so I would think CUs who offer credit cards are still going to loan money that way.

I agree with cobra.

[haulingthescoreup]

I think that most banks want to continue to make money. They'll review their CC-holders to assess for risk, but unless they take AmEx's take-no-prisoners approach, I think that those with decent scores and stable reports should be OK.

I wouldn't advise anyone to take advantage of a new 0% APR or BT in the next little while though. Don't scare the horses, not in this climate.

It's the rebuilders that are going to hurt for a while. I think that the CC tier previously occupied by WaMu, Hooters, Cap1, etc. is going to get really crunched for a while, until someone figures how to take on the risk. Time, and possibly credit union cards, will have to be the friend here for a while, I'm afraid.