Credit card article by Meredith Whitney

[Anonymous_IHB]

Credit Cards Are the Next Credit Crunch

Washington shouldn't exacerbate the looming problem in consumer credit lines.

http://online.wsj.com/article/SB123664459331878113.html

 

[halfnote19_IHB]

I think this will primarily affect those with lower credit scores.

 

[usctrojanman29_IHB]

I think this will primarily affect those with lower credit scores.

haha Ummm, try again. This will and has affected a lot of people. As has been proven with the Alt-A mess, it's not the credit scores that determine the financial capacity for a borrower to service their debt...it's their incomes/employment. My mom has an 800+ FICO with a 20+ year perfect credit record (hasn't paid a dime of interest on her CCs) yet her CC limits are getting slashed...explain that to me?

 

[Daedalus_IHB]

+1 I have posted before about a credit card being canceled. My FICO is ~800 as well.

 

[usctrojanman29_IHB]

+1 I have posted before about a credit card being canceled. My FICO is ~800 as well.

I'm not surprised...I have a FICO in the low 700s and my card limits are slowly decreasing as well. The worst cuts in CC limits on my mom's cards were for a Chase CC going from a limit of $38k to $16k and a WAMU CC (before it was taken down by Chase) that went from a limit of $26k to $17.5k.

 

[Daedalus_IHB]

My card had a $28k limit, which was absurd considering my income when they (voluntarily) upped it to that amount. I didn't use the card but I was concerned the cancellation would have an impact on my FICO. But my Experian score didn't change, so hopefully my FICO didn't either.

 

[halfnote19_IHB]

I just had the limit on my credit card raised... and I didn't even ask for it.

 

[opuswon_IHB]

I just had the limit on my credit card raised... and I didn't even ask for it.

Same here with Chase being the bank. I carry no balance with excellent credit.

 

[Daedalus_IHB]

Chase is changing their tune?

 

[opuswon_IHB]

Chase is changing their tune?

Interesting. I just glanced through the thread, but it looked like they were closing down accounts that were not actively in use. In my case it is my"primary" card that I use for bill paying. Maybe that is the difference...

 

[norcaljeff_IHB]

I think this will primarily affect those with lower credit scores.

this will affect people without jobs or income.