Comments on: Why putting in stricter credit standards is making credit card debt riskier for banks http://jubakpicks.com/2009/09/14/why-putting-in-stricter-credit-standards-is-making-credit-card-debt-riskier-for-banks/ Sun, 12 Feb 2012 18:19:20 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Dog eat dog in credit cards | Daily Stock News and Analysis http://jubakpicks.com/2009/09/14/why-putting-in-stricter-credit-standards-is-making-credit-card-debt-riskier-for-banks/comment-page-1/#comment-793 Dog eat dog in credit cards | Daily Stock News and Analysis Wed, 16 Sep 2009 01:30:18 +0000 http://jubakpicks.com/?p=1184#comment-793 [...] for uncollectible loans falling to 7.92% in July, compared with the industry average 10.55%. (See my September 1st post about why putting in stricter credit standards is making credit card debt riskier for [...] [...] for uncollectible loans falling to 7.92% in July, compared with the industry average 10.55%. (See my September 1st post about why putting in stricter credit standards is making credit card debt riskier for [...]

]]> By: dogforlife http://jubakpicks.com/2009/09/14/why-putting-in-stricter-credit-standards-is-making-credit-card-debt-riskier-for-banks/comment-page-1/#comment-783 dogforlife Tue, 15 Sep 2009 13:12:05 +0000 http://jubakpicks.com/?p=1184#comment-783 I'm not old, but I am old fashioned. For me "religiously pay all my cards on-time" means paying off all the outstanding debt. At today's rates one is at a minimum paying 10% to be able to spend more than they make. The banks don't want you to pay it off, they want to gouge you on your revolving credit. Where else can one get a guaranteed return? Smart finanical planning would have you paying off your credit card debt monthly, living within your means, and in an emergency tapping into a emergency fund that you have created, and avoiding the pitfalls of revolving credit. Minimum payment is their game. Pay it all off, every month, religiously. I’m not old, but I am old fashioned. For me “religiously pay all my cards on-time” means paying off all the outstanding debt. At today’s rates one is at a minimum paying 10% to be able to spend more than they make. The banks don’t want you to pay it off, they want to gouge you on your revolving credit.

Where else can one get a guaranteed return? Smart finanical planning would have you paying off your credit card debt monthly, living within your means, and in an emergency tapping into a emergency fund that you have created, and avoiding the pitfalls of revolving credit. Minimum payment is their game. Pay it all off, every month, religiously.

]]> By: DeniseHFernald http://jubakpicks.com/2009/09/14/why-putting-in-stricter-credit-standards-is-making-credit-card-debt-riskier-for-banks/comment-page-1/#comment-779 DeniseHFernald Tue, 15 Sep 2009 01:22:07 +0000 http://jubakpicks.com/?p=1184#comment-779 On my Barclay's card, the credit limit was reduced from $20k to just above the then-current balance of $3300. So I went from having a 15% credit usage rating to a 95% credit usage rating. Likewise, on Capital One, they reduced it from $13K to my then-balance of $6500 -- which took me from 50% usage to 95% again. Then my FICO score gets dinged and my interest rate goes up as a result, which increases profits to the CC companies. Since I religiously pay all my cards on-time and always pay considerably more than the minimum, I'm assuming these artifically increased credit usage ratios aren't putting me into the "risky subprime category" -- but I'm sure I'm in a lower category of customer desirability, despite my ongoing 6-figure income. So it seems to me that some of the "proportion of cardholders who have fallen..." include folks like me who are still employed and paying their bills. We just don't look as good as we used to.... On my Barclay’s card, the credit limit was reduced from $20k to just above the then-current balance of $3300. So I went from having a 15% credit usage rating to a 95% credit usage rating. Likewise, on Capital One, they reduced it from $13K to my then-balance of $6500 — which took me from 50% usage to 95% again. Then my FICO score gets dinged and my interest rate goes up as a result, which increases profits to the CC companies. Since I religiously pay all my cards on-time and always pay considerably more than the minimum, I’m assuming these artifically increased credit usage ratios aren’t putting me into the “risky subprime category” — but I’m sure I’m in a lower category of customer desirability, despite my ongoing 6-figure income. So it seems to me that some of the “proportion of cardholders who have fallen…” include folks like me who are still employed and paying their bills. We just don’t look as good as we used to….

]]> By: bruceonvashon http://jubakpicks.com/2009/09/14/why-putting-in-stricter-credit-standards-is-making-credit-card-debt-riskier-for-banks/comment-page-1/#comment-776 bruceonvashon Mon, 14 Sep 2009 22:41:28 +0000 http://jubakpicks.com/?p=1184#comment-776 One more reason their exposure is increasing. When US Bank reduced my credit limit twice without notifing me, I cancelled their card. Now they have to find sumeone with a sub 800 credit score to maintain their profits. Too many good deals for people with good credit to play these kind of games. Of course they also lose a 20 year customer. Much the same senerio as Washington Mutual prior to it's failure. One more reason their exposure is increasing. When US Bank reduced my credit limit twice without notifing me, I cancelled their card. Now they have to find sumeone with a sub 800 credit score to maintain their profits. Too many good deals for people with good credit to play these kind of games. Of course they also lose a 20 year customer. Much the same senerio as Washington Mutual prior to it’s failure.

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