Posted on 09/21/2025 2:29:19 PM PDT by CIB-173RDABN
If you’re a banker, always remember that a person in need is a person to be squeezed.
One could say the same thing about million dollar mortgages on new construction mold magnet tar paper shacks. There is no real collateral involved except maybe the lot; no where near the ‘value’ of the ‘money’ created.
This is between the lender and the borrower.
It’s not my business.
Why do lender/borrower problems become tax-payer problems?
The other day I received a letter from my credit card company. They are raising my card’s interest rate from 19% to 27%. Just because.
I’m not too upset about this because I pay off my balance every month. Nevertheless, I find it curious. Maybe my credit card company just doesn’t like me anymore.
Mine lowered my limit as I am only using a tiny fraction of it and always pay it off.
When my daughter was in college, she would get offers for guaranteed credit cards weekly, even though she had no income. She never got any, thank goodness.
Many years ago I/We went 100% debt free, have paid cash for 2 different houses recently, write checks when we need a new car.... Have not and will not EVER BORROW ANOTHER NICKEL. Life has been Great since that decision was made. It helps to have a modest income too.
When a sufficient number of states reinstate usury laws...maybe then the industry will reward good credit risks.
When it drags the country into Depression II.
Because investing in politicians offers the greatest return on investment.
Get yours while supplies last!
Bring back usuary laws. Cap credit card interest rates at say, 8% and the cards will dry up. But certain people oppose that.
“Credit scoring agencies already track all open accounts”
Currently scoring agencies are a joke. There are way too many ways to “game-the-system”.
It’s a free world. If someone wants to risk bankruptcy while someone else is willing to lend to a marginal borrower for sufficient compensation, so be it.
Also have excellent credit. Tried to take out an equity loan from the bank that holds our mortgage. I’ve been paying it down faster than agreed so there should be plenty of equity.
They needed an inspection, which valued the place more than twice what we paid. Then they didn’t like our existing home insurance coverage, which would have required another inspection by the insurer. After all that, I could get a better interest rate from an unsecured loan through Sofi.
I’m already a customer with a stellar payment history on an asset that’s appreciated. My salary and credit rating have got to be top 5% in our rural county. WTH more do they want? How does any regular working schmuck get a loan? I wasn’t even asking for all that much money. I could float it at least one of our credit cards if I didn’t care about the interest rate.
While I agree with the general direction of this, I’d need to review the details...
At any event, one thing we need to realize is that the lower the interest rate, the less people will be able to get (or keep) credit cards. As banks will need to cut back on their risk profiles to match the lessened revenues.
This is not entirely a bad thing. “Excessive” credit card debt, especially at today’s prevailing very high interest rates, hurts lower income people the most.
It is, though, something we need to keep in mind? Perhaps a phase-in mechanism to allow folks to adjust the way they handle their daily finances..... and to prevent millions of credit card account from being closed all at once? Cancelling millions of credit accounts all at once would jolt the economy at least as much as the author’s feared crash. Or?
The consumer is the least of our problems.
The Congress and the lobby are the problems.
It's the same old nonsense over and over again. "Banks are discriminating against [NAME RACIAL/ETHNIC GROUP] by refusing to extend them credit."
Clearing you debts probably won’t stop the collapse.
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