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

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

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. 

Starting Score 14/6/19: EX634 EQ683 TU663
Current Score 21/9/19: EX636 EQ679 TU658
Goal Score: 700


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Message 1 of 19
18 REPLIES 18
Regular Contributor

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

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.

CARDS: Discover It | QuickSilver One | Open Sky | Kohl’s | OverStock
Starting Scores 05/2019: EQ:519, EX:525, TU:574
Message 2 of 19
Frequent Contributor

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

OP, where did you hear this from?

 

And did the person have any street cred?

    EQ=846       TU=834        EX=822      INQ=0/0/2     UTIL=1%        AZEO

Message 3 of 19
Regular Contributor

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


@OmarR wrote:

OP, where did you hear this from?

 

And did the person have any street cred?


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).

Message 4 of 19
Regular Contributor

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

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.
Rebuilding Since 2016
6/5/2019 - Fico 8 Scores - EQ 672 TU 683 EX 674
6/15/2019 - FICO 8 Scores - EQ 682 TU 698 EX 690
8/10/2019 - FICO 8 Scores - EQ 706 TU 705 EQ 689
9/15/2019 - FICO 8 Scores - EQ 710 TU 713 EX 690
Message 5 of 19
Super Contributor

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

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. 


Scores 1/2019:
Scores 9/2019:

Hover over my cards to see my limits!
Goal cards: Does it look like I really need any more cards? My goal is to garden until 2/2020.
Message 6 of 19
Community Leader
Senior Contributor

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


@Saeren 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. 


+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.

GOALS: Garden til APR 2020 and 800 Club


SEP 2019: EX 791, TU 797, EQ 800
JUN 2019: EX 788, TU 794, EQ 779
DEC 2018: EX 777, TU 783, EQ 799

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Message 7 of 19
Community Leader
Mega Contributor

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

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. 

EX 754 EQ 774 TU 752


Message 8 of 19
Regular Contributor

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

@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.

CARDS: Discover It | QuickSilver One | Open Sky | Kohl’s | OverStock
Starting Scores 05/2019: EQ:519, EX:525, TU:574
Message 9 of 19
Super Contributor

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


@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.

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


Scores 1/2019:
Scores 9/2019:

Hover over my cards to see my limits!
Goal cards: Does it look like I really need any more cards? My goal is to garden until 2/2020.
Message 10 of 19
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