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

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Regular Contributor

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

Thank you @Saeren! Joining this community was the best thing I’ve done to start my rebuild. Members always there to help.

CARDS: Discover It | QuickSilver One | Open Sky | Kohl’s | OverStock
Starting Scores 05/2019: EQ:519, EX:525, TU:574
Message 11 of 19
Frequent Contributor

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

OP,  you have to rebuild and put yourself in a financial position so that you can buy things at 50% slashed prices because no one else is buying.

 

I love recessions.

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

Message 12 of 19
Valued Contributor

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

I don't mind a little CL slashing here an there, I've got plenty of available credit. However, I hope they don't get slash happy while I'm out of the Country on vacay. lol

 

I could probably weather a 50% CLD on each card and still be just fine. But this reminds me that I need to get those BT's paid off soon.

Message 13 of 19
Valued Contributor

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


@Remedios wrote:

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. 


Building your savings is most important when building or rebuilding credit. My favorite analogy is to this is "Relying on credit cards for a financial emergency is no better than relying on a gun when you need cash." Both will get you into trouble in the long term. Having money in savings is the best way to safeguard your financial future.


















Your FICO credit scores are not just numbers, it’s a skill.

Message 14 of 19
Valued Member

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

Yes! I am trying to get ready! It will be a buyers market again and I'd like to invest in a four-plex. 

Starting Score: EX634 EQ683 TU663
Current Score 22/8: EX637 EQ659 TU657
Goal Score: 700


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Message 15 of 19
Valued Member

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

Those of us rebuilding aren't as fortunate as you Smiley Happy

Starting Score: EX634 EQ683 TU663
Current Score 22/8: EX637 EQ659 TU657
Goal Score: 700


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Message 16 of 19
New Visitor

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

SBI has already reduced the interest rates on FD, I think there is an economic slowdown in our country. So I think we can expect some actions from banks in the coming days.

Message 17 of 19
Frequent Contributor

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

Banks will not necessarily cut CLs during recession. I’ve always had large CLs (>50k) even as a student decades ago and never had my CL decreased.

My tip is to remain calm when it comes to credit. Don’t go applying for CCs in anticipation of tighter credit — a large number of recent credit apps would probably worry the banks and trigger AAs.

The best thing to do is to get your financial house in order: that means first and foremost having enough savings to ride out trouble so that you can keep using and paying off CCs as normal. Reduce spending now to save more if need be (lowering spend is always a good thing anyway).
Message 18 of 19
Valued Member

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


@tacpoly wrote:
Banks will not necessarily cut CLs during recession. I’ve always had large CLs (>50k) even as a student decades ago and never had my CL decreased.

Off topic but I read on a thread that you have a special order Birkin. One day when you feel like sharing you'll have to post a photo so I can drool and continue to pray to the Hermès Gods that one day I'll be able to afford one Smiley Happy

Starting Score: EX634 EQ683 TU663
Current Score 22/8: EX637 EQ659 TU657
Goal Score: 700


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Message 19 of 19
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