Say good-bye to credit?

MarketWatch ^ | 12-7-08 | Andrea Coombes

[RKBA Democrat]

If you haven't yet had your credit limit slashed on one of your credit cards, it's highly likely you will -- if Meredith Whitney is right, that is. Whitney, an analyst and managing director at Oppenheimer & Co. who predicted the current financial-services industry meltdown, now says credit-card issuers will eliminate more than $2 trillion in available credit over the next 18 months.

Already, lenders have cut back on available credit due to their heightened aversion to risk and difficulty in funding loans. Before the financial crisis, consumer loans could be sold on a secondary market and the proceeds could help to spur more lending, but that market has largely dried up.

[daltec]

One of my “life goals” is to have a FICO score of “0,” haha. To be earned by never financing anything, ever. FICO scores and credit cards are evil BS. IMHO.

I might not ever achieve this goal, but it is worth shooting for, in my opinion. It’s been almost 9 years since I had any sort of credit card or car loan. I do have a mortgage, but that is why I call it a “life goal” I guess.

:-)

[nufsed]

From what you describe, your score is probably pretty high. It might be a little higher if you had two credit accounts instead of one. However, it’s not much to sweat about. If you need to buy a car or house, a score of 720 or above will do nicely. Also, you can go online and check your score yourself, without being dinged the usual 10 points for doing a credit check.

[nufsed]

They may seem evil to you, but if you have to buy a car or a house on credit, it helps to have some credit history. You can save on your payments.

If you're a survivalist or some such, never mind.

[EVO X]

I've never understood how current credit card practices are anything but criminal.

At least with the current system debtors are allowed to keep their kneecaps..

[Junior_G]

At least with the current system debtors are allowed to keep their kneecaps..

Good point. Pinkies too.

[varon]

My bank keeps pleading with me to take one of their cards with a $30k limit without even making out an application.

They probably figure in case of default, you're big enough to qualify for a government bailout ;-)

[varon]

FICO scores and credit cards are evil BS. IMHO.

Absolutely and electricity is the work of the devil ;-)

[dalereed]

“Absolutely and electricity is the work of the devil ;-) “

Only if it's 480v and you have one hot in one hand and the neutral in the other!

At that point the mortician is your best friend!

[Dasaji]

Personally I think the reason the limits are being reduced is so people can hit their credit limits easier and pay more money in over-the-limit fees

...AND, if the credit line is lowered to a point where usage exceeds 50%, it will impact FICO scores. In turn, it will mean higher interest rates on car loans & mortgages and higher insurance premiums.

[napscoordinator]

and getting a couple of 30 day past-dues eliminated off my credit report.

How did you do that? I have a few from 2002-2003 and they still linger...

[An Old Man]

One way you do this is to tax interest payments and to give tax deduction to savings income.

I believe we have a winner! What a great way to punish the Moochers and Looters and to reward the producers. Would you be interested in making a run for President next time?

[Perdogg]

Yes. I have an economic plan, unlike Obama, who has been making one up as he goes along.

[Gigantor]

I’ve had two cards with zero balances close out from under me.

Same thing here. Poof! Just like that.

[An Old Man]

I just noticed your tag line. If he quits before then, you will be a shoe in to replace him.

I just cannot bring myself to take him seriously on any subject.

[EBH]

Try the number on the back of your card.

[j_k_l]

Say good-bye to credit?

People living within their means. That is a problem?

[Jacquerie]

In our twisted debt culture, you were an expense, not an asset to the company.

[hunter112]

I noticed that there were duplicates in the record, and challenged that, apparently my credit union decided not to "verify" any of them, and they were all taken off the record. The best thing to do is challenge them with the credit bureau that shows them, cite some sort of reason (mine was having moved, and they did not forward mail properly), and see what happens. The very worst is that the creditor will come back and say that their version of events is correct, and nothing gets changed.

By the way, mine were in the 2005 time frame, some 30 day past dues from 02-03 are probably insignificant on your credit score. After seven years, everything except bankruptcy drops off, you're probably pretty close to not seeing them at all anymore in a year or so.

[RKBA Democrat]

“the limit is only reduced on those that shouldn’t have a credit card to start with.”

It’s also happening to folks for little apparent reason. Now don’t get me wrong. I think reduction of credit card limits is a GOOD thing. I merely prefer that it’s the cardholder who reduces them at their convenience rather than the credit card companies. Either way, it’t a move in the right direction.

[RKBA Democrat]

“Well, I KNOW that. ; ) I’m a red head who makes Korean food videos on youtube. I’ve learn to except my quirks. Hehehe!”

Kewl! I’ll save the link. I’m crazy about Korean food.

“The Korean gov’t is worried about the fact the average Korean carries about $750 in debt on their credit cards.”

They’re right. $750 has a way of becoming $7500.