Credit Card Companies Cutting Card Balances...
So was just talking to mom and she told me that her CC company has just reduced the amount of credit on her card that she has had since the 80's.
She never keeps a 'balance' on the card and it gets paid off in full whenever she uses it, no matter how much she has used it.
Do you think with the credit card companies doing this type of stuff people are going to be more cautious about using their cards to spend on memberships to porn sites?
I can totally understand why the CC companies would want to do this, it limits their exposure to people not paying off the balances they run up, but at the same time, if you have a zero balance and your credit line gets cut in half, is this going to help or hinder the individual and the economy along with the adult industry?
Regards,
Lee
Europeans Billing Europe!
Quote:
Originally Posted by
nickbaer
What is particularly evil about it is that one part of the FICO score is based on the amount of one's credit lines vs the amount they have actually used.
I think the real measure of consumer buying habits will be in the Spring when the customers' cycles moves them back outdoors.
Quote:
Originally Posted by
gaybucks_chip
From what I've been reading, credit-card backed securities are going to be the upcoming wave that kills even more banks.
Apparently big card issuers have, for a couple years, been packaging credit card debt from a bunch of consumers and selling it off in the same way the mortgage banks were doing with mortgages. Only now, the credit cards are starting to experience defaults in the same way that mortgages were a few years back.
Some really good posts here, you guys are paying attention - other issues for the industry are the effects of lowered rates on balances and interference with recurring, higher card interest rates encouraging holders to more closely scrutinize their monthly bills...