Credit card article by Meredith Whitney

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Credit Cards Are the Next Credit Crunch

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

<A href="http://online.wsj.com/article/SB123664459331878113.html">http://online.wsj.com/article/SB123664459331878113.html</A>
 
[quote author="halfnote19" date=1236730836]I think this will primarily affect those with lower credit scores.</blockquote>
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?
 
[quote author="Daedalus" date=1236734153]+1 I have posted before about a credit card being canceled. My FICO is ~800 as well.</blockquote>
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.
 
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.
 
[quote author="halfnote19" date=1236735325]I just had the limit on my credit card raised... and I didn't even ask for it.</blockquote>Same here with Chase being the bank. I carry no balance with excellent credit.
 
[quote author="Daedalus" date=1236736233]<a href="http://www.irvinehousingblog.com/forums/viewthread/3351/">Chase is changing their tune?</a></blockquote>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...
 
[quote author="halfnote19" date=1236730836]I think this will primarily affect those with lower credit scores.</blockquote>


this will affect people without jobs or income.
 
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