Word on the street is a recession is coming....Will Banks start slashing limits?

[Anonymous]

I'm gardening but I'd like to be prepared in case lenders get nervous. I'm rebuilding and likely considered high risk. I'd like to avoid any type of AA. All tips welcome. 

[Rebuild2019]

Good post. I’m in the same boat (not as far along). I’m a little concerned about being denied as my score goes up.

[OmarR]

OP, where did you hear this from?

And did the person have any street cred?

[CAS2019]

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@OmarR wrote:

OP, where did you hear this from?

And did the person have any street cred?

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The stocks took a big dip today, and economists are predicting a possible world recession within the next couple of years (this is what I heard on today’s newscast).

[Anonymous]

Inverted yield curve. Has preceded the previous 7 recessions. 2 yr rate is higher than the 10 yr rate as of this morning. Part of the reason the market was down so much today.

[Anonymous]

If there is another recession, all lenders will take AA. There were many who didn’t have any indicators of financial stress who had their limits slashed as banks lost money, let alone those with less than stellar credit history. 

Best to get in with a good strong credit union, they weather recessions much better than banks. 

Otherwise, just make sure you have a budget that covers any monthly expenses and savings to cover anything else. 

[CreditInspired]

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@Anonymous wrote:

If there is another recession, all lenders will take AA. There were many who didn’t have any indicators of financial stress who had their limits slashed as banks lost money, let alone those with less than stellar credit history. 

Best to get in with a good strong credit union, they weather recessions much better than banks. 

Otherwise, just make sure you have a budget that covers any monthly expenses and savings to cover anything else. 

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+1

Lenders will only be looking out for themselves (risk assessment); and IMHO, will cut CLs if there is even a sniff of a recession on the horizon. They know that people will be living on CCs if they lose their jobs, etc., and they want to be ahead of that curve.

OP, the best thing is to make sure balances are extremely low, so that if they do start slashing CLs, it won't hurt your UT too much.

[Remedios]

The best tip would be to continue doing what you've been doing and make sure your savings account grows a lot faster than credit scores. 

Recession is possibility, but you dont live your life in preparation for death

If you're rebuilding, you're familiar with the what you need to do credit wise. We have very little control over limits, AA or any action on the part of the lenders so why sweat something that may or may not happen at some undetermined point in future? 

If a person is already surviving on credit cards, they dont need recession to know they are in trouble.

It's business as usual till sky starts falling down. 

[Rebuild2019]

@Saeren I think I can get in with Navy Federal. Are they linked in to check on deceased members of the military (my dad)? If not do they open the accounts pending you providing paperwork?
I have been keeping my balances low and only using cards to purchase or pay bills I normally pay. Scores are moving just not fast enough. I am using AZEO.

[Anonymous]

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@Rebuild2019 wrote:
@Saeren I think I can get in with Navy Federal. Are they linked in to check on deceased members of the military (my dad)? If not do they open the accounts pending you providing paperwork?
I have been keeping my balances low and only using cards to purchase or pay bills I normally pay. Scores are moving just not fast enough. I am using AZEO.

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You can call and join over the phone. They’ll ask branch and rank. That’s enough to get membership started. They do have ways to verify affiliation but just in case, you’ll want to order his DD-214 and have that available if they ask for it. 

https://www.archives.gov/veterans/military-service-records