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luvnet217
Joined: 02 Feb 2009
luvnet217's page
Posts: 12
551 Magic Points
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Subject: credit card and global crisis
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Tue Feb 03, 2009 3:20 am
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| Do credit card holder affected by the global crisis?because they said that in US now is great affected in global crisis and show that some credit card are stop to give credit. |
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Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1240
28942 Magic Points
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Tue Feb 03, 2009 6:30 am
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The credit card holders are affected by global crisis if the credit card company is affected. However, the banks and financial institutions that offer credit cards has lowered the credit limit after the sub-prime crisis because these financial companies in most cases have not been able to recover the credit which has already been taken by the debtors through credit cards. So in order to lower the risk, they have reduced the credit limits. Not only this, for some customers which large debts on credit cards, the credit card companies has even stopped offering more credit.
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All the Best 
Justin |
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carol
Joined: 27 Jun 2006
carol's page
Posts: 1307
Location: Los Angeles, California
29555 Magic Points
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Tue Feb 03, 2009 6:40 am
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Yes, Banks and other credit card companies can lend so longer they have money with them. Now, there are many card users who defaulted their payments either because of the job loss or because they are unable to repay the outstanding debt as their income do not support such a huge payment. This has led to reduction in the available money for lending with the banks and so these banks has to lower the credit limit or in some cases even stop giving credit to the existing card users.
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Carol |
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MariaBel
Joined: 04 Feb 2009
MariaBel's page
Posts: 1
50 Magic Points
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Wed Feb 04, 2009 8:12 pm
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Agree, there are two dangers posed here: tighter credit lending criteria will mean card holders are less likely to get access to new credit and may even be re-classed into a more risky category and pay higher rates. The other is that banks would seek to increase interest altogether across the whole spectrum of products as they try to compensate for the loss of business with higher margins. If I were you I would carefully analyze all correspondence I receive from my bank just to make sure I don't miss any radical changes and end up paying a great deal more in interest than what I started out with.
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http://bestrewardscreditcards.zoxic.com/ |
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fireyone
Joined: 26 Feb 2008
fireyone's page
Posts: 4285
127 Magic Points
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Wed Feb 04, 2009 11:58 pm
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| CAn banks increase interest just like that? I always thought they tried to stay around the same interest rate as other banks so they could compete for business. |
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Thu Feb 05, 2009 8:31 am
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| The problem faced now is that it is a suppliers market now (meaning that suppliers, i.e. banks dictate conditions and not consumers). There is plenty of demand, but since all banks have decreased supply of credit, what we are facing is an increase in interest rates across the whole spectrum of banks and consumers are becoming ready to pay higher interest because otherwise they cannot get access to credit. |
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Mary
Joined: 06 Jul 2006
Mary's page
Posts: 686
17396 Magic Points
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Thu Feb 05, 2009 12:26 pm
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Yes, higher is the interest rate on new credit, lower will be the borrowings. Such a measure has been taken by most banks after the recent sub-prime crisis. Moreover, many banks have also lowered the credit limit for customers and have also stopped cash advances on cards. In many cases, the banks have also closed credit card accounts for customers with huge outstanding debts.
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Where there's a will, there's a way !! |
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GarySnober
Joined: 08 Apr 2009
GarySnober's page
Posts: 67
6 Magic Points
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Thu Apr 09, 2009 2:30 pm
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| Completely agree with this post. Banks and Credit card companies are really tightening up and giving out credit. Rates are going higher. People who arent using there cards like they use to are seeing dramatic credit limit cuts, Inactive cards are being closed. The requirements on getting cards now have been pushed up a little more to get a new cc. |
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Jacie
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Subject: ysFnNzlnEpQB
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Tue Jul 05, 2011 5:55 am
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| AKAIK you've got the awsner in one! |
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