Credit Crisis about to get tighter

jdlegall · Joined: 29 Sep 2008 Posts: 23 16.62 Dollars($)

Mortgage Meltdown To Hit Credit Card Users
http://redtape.msnbc.com/2008/10/how-credit-card.html

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jdlegall · Joined: 29 Sep 2008 Posts: 23 16.62 Dollars($)

Consumers should expect credit card issuers to behave like wounded animals in the upcoming months. Given the desperate state of some issuers, consumers should be even more vigilant than usual. Notices of credit limit adjustments or interest rate hikes can be easy to miss.

"They can look like a piece of junk mail,” Hardekopf said. “But if (banks) lower your credit limit and you don't notice, you can blow by it," he said. He urged consumers "not to do anything to raise your credit risk or (lower) your credit score," as card issuers will be looking for any excuse to raise rates. Shocked

What exactly do they mean by "don't do anything to raise your credit risk"? I pay my cards twice a month. My due date is the 10th and my statement closes on the 15th. I pay the minimum payment on the 1st and then pay the entire balance or 90% of the balance by the 13th.

I'll have to see what would be considered a risky maneuver other than over shopping. I try to never use more than 15 - 30% of my credit limit on one card. So that may be one "risky" thing, consistently getting close to your credit limit?

Thanks a bunch banks, like we don't have enough problems! Evil or Very Mad

jameshogg · Posted: Wed Oct 15, 2008 11:39 pm Post subject:

Hi jdlegall!

I just went through the website you mentioned and read the article. Very informative indeed! What they mean by "don't do anything to raise your credit risk" is that you should also be well informed about your credit limit. Suppose your bank had reduced your credit limit and you did not know that, you may be in trouble. In the present market conditions you need to be careful about these small things. These things will help you in the long run.

Thanks.

Caron · Posted: Thu Oct 16, 2008 5:53 am Post subject:

Hi jdlegall,

That's an interesting piece of information you've shared. But do you think it's fair for any credit card issuer to penalize customers depending upon from which bank they take out a mortgage? I don't think it's fair enough because most customers aren't aware as to how good a bank they're dealing with.

Good luck

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