PDA

View Full Version : Credit Card Reform


Overlay
05-19-2009, 11:21 PM
http://www.msnbc.msn.com/id/30829066/

I see at the above link that, in order to "punish" credit-card issuers for the penalty fees and interest charges that they have collected from people who often should not have been extended credit in the first place, Congress has placed limits on those fees and rates. As a result, "good" customers who have consistently paid their credit-card bills in full and on time will find themselves with annual fees for cards that used to be free; interest charges on purchases from the moment the transaction registers, with no grace period until the end of the monthly billing cycle; and fewer (or no) cash-back or rewards programs for credit-card use. And, once again, the government has reprieved people from learning the basic life lesson that actions have consequences, while doing it at the expense of those who "played by the rules" all along.

Coincidentally or not, I was listening to a speech today by Michael Steele, the new chairman of the Republican National Committee, in which he cited the following quote (from 1942) by William J. H. Boetcker, a Presbyterian minister and public speaker. (The quotation was used more recently by Ronald Reagan in his address to the 1992 Republican convention.)

You cannot bring about prosperity by discouraging thrift.
You cannot strengthen the weak by weakening the strong.
You cannot help little men by tearing down big men.
You cannot lift the wage earner by pulling down the wage payer.
You cannot help the poor by destroying the rich.
You cannot establish sound security on borrowed money.
You cannot further the brotherhood of man by inciting class hatred.
You cannot keep out of trouble by spending more than you earn.
You cannot build character and courage by destroying men's initiative and independence.
And you cannot help men permanently by doing for them what they can and should do for themselves.

I think I'm going to paste those words in a prominent place in our home where I can read them at the start of every day.

ArlJim78
05-19-2009, 11:32 PM
Yes we can bring about prosperity by discouraging thrift.
Yes we can strengthen the weak by weakening the strong.
Yes we can help little men by tearing down big men.
Yes we can lift the wage earner by pulling down the wage payer.
Yes we can help the poor by destroying the rich.
Yes we can establish sound security on borrowed money.
Yes we can further the brotherhood of man by inciting class hatred.
Yes we can keep out of trouble by spending more than we earn.
Yes we can build character and courage by destroying men's initiative and independence.
And yes we can help men permanently by doing for them what they can and should do for themselves.


with only minor editting it becomes an Obama campaign speech.

chickenhead
05-19-2009, 11:39 PM
I don't like it -- but it's also obvious that a very large portion of population can't seem to handle having credit cards. It's like giving alcohol and guns to little children. (Which is only ok on holidays and special occasions.)

Overlay
05-19-2009, 11:47 PM
Minor correction: The quote dates back to 1916. 1942 was the year in which it was erroneously attributed to Abraham Lincoln.

kenwoodallpromos
05-20-2009, 02:42 AM
if people should do for themselves, what are business subsidies and what is a "LLC" in a company name?

The Judge
05-20-2009, 05:10 AM
jump all over the credit card industry if all they were doing was collecting fees from those who were late paying? Its because thats not what the credit card companies were doing. They were making up fees and penalties as soon as you got use to one set of rules they instituted another. They were collecting "special fees" from 35% of their customers.

Here is what is being proposed its seems reasonable even modest to me. Its mainly about giving the customer information they can read and understand. They aren't punishing the innocent as far as they are concern there are no innocent only lambs to be fleeced. So they are fleecing the lambs while they still can, they use reform as an excuse to gouge everyone for old time sakes that means me and you. http://www.consumersunion.org/pub/core_financial_services/004292.html

acorn54
05-20-2009, 06:07 AM
I don't like it -- but it's also obvious that a very large portion of population can't seem to handle having credit cards. It's like giving alcohol and guns to little children. (Which is only ok on holidays and special occasions.)

my personal obsevations about people today is that they are short sighted and have to be treated like children because they act like children, hence government has to step in and take care of them.

Tom
05-20-2009, 07:23 AM
Some practices by the C companies were outright unacceptable and needed to be regulated. As long were are nationalizing everything, though, let's just declare all CC balances to be zero and see how that stimulates the economy! Woo Hoo! :jump:

boxcar
05-20-2009, 07:55 AM
my personal obsevations about people today is that they are short sighted and have to be treated like children because they act like children, hence government has to step in and take care of them.

And have your "personal obsevations" (sic) also told you that you people (including yourself) can't think for themselves and, therefore, need the state to do it for them? And have your "personal obsevations" (sic) also told you that you can't spell a lick and that the state really needs to help you out in this area, too?

Boxcar

Valuist
05-20-2009, 01:10 PM
I don't like it -- but it's also obvious that a very large portion of population can't seem to handle having credit cards.

Bingo except I'd leave out the word "cards". Many people cannot handle credit----period. The card companies have every right, IMO, to raise rates on those with lousy credit. Why should the rest of us be penalized. We are living in a damned blameless society....just listen to the ads, whether its for people who've been foreclosed and gotten into financial trouble, or overweight people who can't say no, the message is "its not your fault". Ah, yes it is.

acorn54
05-20-2009, 01:52 PM
i am an accountant by training and i am very careful with my expenses. however at a local supermarket that i now work at i had a conversation with the deli clerk who said he was glad the supermarket now has direct deposit for our paychecks. he said it is better for him since now he can't get his hands on his paycheck money because he spends it all when he use to get it at the supermarket payroll counter.
i never realized some people really have a hard time handling money. it seems like some sort of disease like compulsive gambling.

Marshall Bennett
05-20-2009, 02:00 PM
Bingo except I'd leave out the word "cards". Many people cannot handle credit----period. The card companies have every right, IMO, to raise rates on those with lousy credit. Why should the rest of us be penalized. We are living in a damned blameless society....just listen to the ads, whether its for people who've been foreclosed and gotten into financial trouble, or overweight people who can't say no, the message is "its not your fault". Ah, yes it is.
Years ago I carried a balance , I don't anymore . My house is paid for , that wasn't the case at one time . Now its time to sacrifice so others can do the same . Its simply the on-going pattern . In a socialist state , everyone is thrown into the same melting pot . This administration is determained to release the wrecking ball . Whatever you've worked for , regardless of your education , if you haven't yet made it for yourself and secure with your future , throw it out the window because its not going to matter much longer . The longer this " milking of America " goes on the less I like this POS of a president . I'm not quite there yet but close , as you can see I didn't spell it out .

jballscalls
05-20-2009, 02:14 PM
credit is a tough deal. Everything is so expensive now, cost of living, vehicles, power/gas etc, somebody on a teachers salary 30/40k instead of being middle class is downright poor.

its pretty easy to see how people are reliant upon their credit cards. I have friends that are buried, because it was either use the credit cards to pay the rent while they were looking for work after being laid off, or go homeless. it's a tough scenario.

chickenhead
05-20-2009, 03:08 PM
the debate about these issues like how much interest is too much has been going on since long before Jesus' time, and it'll be going on as long as humans beings are around -- as they'll always be trying to bum money from each other and getting into trouble. There is an ebb and flow to these things, so getting too bent over minor changes here and there seems like a waste of time.

And I wouldn't let the banks of the hook either. There is a ton of money made on transactional volume -- that used to be all there was. It is a very very profitable bizness, without any lending whatsoever. They decided to go ahead and forward huge lines of unsecured credit to pretty much anyone, and everyone blows themselves up, normal people and the banks. I guess my point is, there is not some rule of the universe that everyone needs to have $50K in unsecured credit lines. That's not some American right, or the "way things have always been". It's a brand new experiment, and it's gone pretty horribly awry imo.

I'd say the fact people have such a hard time handling credit -- is the perfect evidence at how new of an experiment it is -- never in the history of man was it so easy to blow oneself up financially. So I'd say the outlier, the "new experiment", is not taking a step back to the olden times -- the outlier is where we just were. We're taking a step back to normalcy.

acorn54
05-20-2009, 03:18 PM
a week or so ago i read a little bit in a new book about human nature and how human's handle money. basically it said that human's think short term by nature and don't fully realize the consequences of their financial actions. so it seems the experiment of giving people credit was a bad idea assuming the author is correct.

Tom
05-20-2009, 03:25 PM
While I am a firm believer in personal responsibility, many practices by the CC companies are just plain predatory and should absolutely be illegal.
Handing out free cards by sending in the mail, tempting desperate people, issuing cards to dogs, preying on college students and younger.......arbitrary rate hikes, penalties for paying off your balance.....sorry, part of being responsible is being fair and honest. The banks exist to serve our economy, make whatever profits they can squeeze out. When they stop facilitating the economy, we need to reign them in.

And that is far left as I go. Just because someone can't handle all of being accountable is not excuse to target him and harvest his life. Part of the accountability must be shared by the institutions that should never have allowed him to get in so deep. But many automatically increase credit lines every time some one would hit their limits.

You ask an alcoholic to deliver a case of scotch to your brother out of town. He drinks it on the way. You telling me you aren't part of the problem?

delayjf
05-20-2009, 03:35 PM
Some practices by the C companies were outright unacceptable and needed to be regulated.

I'm not sure exacty were I stand with this issue, both sides have valid points. But I agree with Tom about some companies in particular, companies like Cash Call amount to loan sharks. They will bump up the interests rates as high as 40-50 percent.

jballscalls
05-20-2009, 03:38 PM
I'm not sure exacty were I stand with this issue, both sides have valid points. But I agree with Tom about some companies in particular, companies like Cash Call amount to loan sharks. They will bump up the interests rates as high as 40-50 percent.

if you look at the cash call commercials, the small print says something like 99%!!

boxcar
05-20-2009, 03:50 PM
a week or so ago i read a little bit in a new book about human nature and how human's handle money. basically it said that human's think short term by nature and don't fully realize the consequences of their financial actions. so it seems the experiment of giving people credit was a bad idea assuming the author is correct.

No, it's not a bad idea! You might as well postulate that the invention of the automobile was a bad idea, too, because irresponsible drivers kill a lot of people every year. :bang: :bang: The "bad idea", sir, is irresponsible behavior by irresponsible people!

Good grief, man! A typical liberal. You never want to assign blame where it ultimately and truly belongs. It's always someone else's fault. In this case -- the credit card companies because someone invented something that can be abused or misused by others. :bang: :bang: It's no wonder at all you're such a big fan of the Nanny State!

Boxcar

acorn54
05-20-2009, 05:16 PM
No, it's not a bad idea! You might as well postulate that the invention of the automobile was a bad idea, too, because irresponsible drivers kill a lot of people every year. :bang: :bang: The "bad idea", sir, is irresponsible behavior by irresponsible people!

Good grief, man! A typical liberal. You never want to assign blame where it ultimately and truly belongs. It's always someone else's fault. In this case -- the credit card companies because someone invented something that can be abused or misused by others. :bang: :bang: It's no wonder at all you're such a big fan of the Nanny State!

Boxcar
well i agree with you that the government has no part in regulation of human behavior. i was just posting what i read from someone else and their viewpoint not that it is mine.

The Judge
05-20-2009, 06:00 PM
have interest rates set they range from 6% - 12% (some may be a little higher depending on the amount owed) this is true of most states conservative as well as liberal. You cannot legally charge more or it will be "usury" and therefore illegal. Usury being a bad thing goes back to biblical times.

Credit Cards companies get around the usury laws by having their companies issue cards from states that have loose usury laws such as South Dakota.http://www.lectlaw.com/files/ban02.htm http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/05/04/BUGOSCJGA61.DTL&type=business

lsbets
05-20-2009, 07:12 PM
The credit card companies opened lines for people who should not have had credit. The blame lies with the supposedly responsible card companies who made bad decisions by extending credit to people who should not have had credit. Since their lobbyists rewrote the laws regarding credit card debt and bankruptcy, they knew they would be able to collect more than they lost on defaults, so they were willing to extend those lines. Put simply, they bought off the government and had free reign. There is one simple fix to the credit problems - rewrite the laws so that unsecured cards are exactly that - unsecured. Once they think they will lose a fortune on defaults, they'll stop opening cards they shouldn't.

When companies buy off the government to get laws written in their favor it has nothing to do with capitalism. They are simply looters, and we should take away all the special protections they have bought for themselves over the years and let them take the losses they deserve. Of course, their friends in DC won't do that - they'll announce a smoke and mirrors bill designed to make the fools who vote for them think they are doing something to hurt the credit card companies, when in reality they are doing very little, just taking the cash and doing as they are told.

Tom
05-20-2009, 07:23 PM
ls, I was thinking that today, what is the snake in the woodpile in this bill?
I haven't found it, but know it is in there.

Sad, the first thing you think of when your government passes a bill is what is the REAL purpose of this? It can't be to help people. :ThmbDown:

Warren Henry
05-20-2009, 08:04 PM
ls, I was thinking that today, what is the snake in the woodpile in this bill?
I haven't found it, but know it is in there.

Sad, the first thing you think of when your government passes a bill is what is the REAL purpose of this? It can't be to help people. :ThmbDown:

I think that this is another feel good bill. A lot of show and very little substance. They make it look like they reined in the evil lenders and took up the cause of the poor victims.

What will it really accomplish? The lenders will still make the same amount of money. But the folks who follow the rules will pay more. In actual practice, it may cause some of the folks at the bottom of the economic pile to have a harder time getting credit (regardless of whether or not they could handle it responsibly).

BlueShoe
05-20-2009, 09:31 PM
According to studies,the average American family has around $10,000 in outstanding cc debt.This figure absolutely staggers me.I have no empathy for such persons whatsoever,it is wildly irresponsible in my opinion.I have cards that are used carefully,but at the end of the month the balance is always the same-zero.They are payed off and no interest is ever payed.If and when the banks charge me interest from date of purchase and/or an annual fee,the answer will be simple and direct;first the scissors and then the shredder.Just for fun,actually looked at the interest rate on my cards had I carried a balance.Again,was staggered.Double digits in this extremely low interst rate environment?So the banks are thieves with usurious rates and the consumers are fools for their "me me me gotta have it" spending mindset.

chickenhead
05-20-2009, 09:46 PM
But the folks who follow the rules will pay more.

Any folks who follow the rules aren't paying anything right now. If they have any sense,and are responsible, they are getting paid for using their CC.

In the future, they may get paid a little bit less (tho I doubt much, they rebate for a reason -- because it makes them more money than not rebating would. It's not charity currently, and it won't be charity in the future.)

Tom
05-20-2009, 09:50 PM
When a family is out of money, and they have a card, do you decide to be fiscally responsible or feed the kids? I agree, it is not responsible, but some people find themselves in a matter of eat or not eat. Or their kids is hurt and they need to take him to the hospitable. Or a parent is old and in poor health, and the have take car of them. The CC companies have been preying on people and while we should all be accountable for our own actions, the reality of it is that not all of us can. REAL control of CCs is in the best interest of the people and the economy.

BlueShoe
05-20-2009, 10:27 PM
Am not critical of cc's in emergencys,medical or otherwise.However,the typical American family will spend $4000 for the newest type TV for the kids bedroom,subscibe to every costly cable package they can,every family member has a cell phone and always goes over their minutes each month,a two week vacation thousands of miles away each year an absolute must,dinner out at least two or three times a week,Mom and Pop just have to have at least one or two of those yummy lattes each day and a couple of bottled waters,and so on,ad nauseum.Then they wonder why their debt is so high and why they cant save.I know families like this,several,and so do you.Just your average middle class American family.

mostpost
05-20-2009, 10:27 PM
Some practices by the C companies were outright unacceptable and needed to be regulated. As long were are nationalizing everything, though, let's just declare all CC balances to be zero and see how that stimulates the economy! Woo Hoo! :jump:

EXcellent idea!! If they do that this month, it would save me $4.00 :jump: :jump: :jump:

mostpost
05-20-2009, 10:39 PM
While I am a firm believer in personal responsibility, many practices by the CC companies are just plain predatory and should absolutely be illegal.
Handing out free cards by sending in the mail, tempting desperate people, issuing cards to dogs, preying on college students and younger.......arbitrary rate hikes, penalties for paying off your balance.....sorry, part of being responsible is being fair and honest. The banks exist to serve our economy, make whatever profits they can squeeze out. When they stop facilitating the economy, we need to reign them in.

And that is far left as I go. Just because someone can't handle all of being accountable is not excuse to target him and harvest his life. Part of the accountability must be shared by the institutions that should never have allowed him to get in so deep. But many automatically increase credit lines every time some one would hit their limit

You ask an alcoholic to deliver a case of scotch to your brother out of town. He drinks it on the way. You telling me you aren't part of the problem?
WOW! Tom and I agree 100% :eek: :eek: .

mostpost
05-20-2009, 10:42 PM
When a family is out of money, and they have a card, do you decide to be fiscally responsible or feed the kids? I agree, it is not responsible, but some people find themselves in a matter of eat or not eat. Or their kids is hurt and they need to take him to the hospitable. Or a parent is old and in poor health, and the have take car of them. The CC companies have been preying on people and while we should all be accountable for our own actions, the reality of it is that not all of us can. REAL control of CCs is in the best interest of the people and the economy.
All right you bleeding heart liberal, who are you and what have you done with the real Tom? :lol: :lol: :lol:

Tom
05-20-2009, 11:32 PM
H E L P !!!

HUSKER55
05-21-2009, 02:39 AM
The problem with credit cards is that too many people use credit cards to just live. Credit card companies prey upon those people and they should be regulated. 24% interest, annual fees and late charges are not credit cards. Neither are prepaid credit cards. Those are rip offs. People that are that broke today will be that broke tomorrow.

The real solution is to find a way to reduce monthly rents and utilities. I would venture a guess and say if you could lower those figures you would lower the indebtedness of the population because more disposable money would be used to pay bills and to increase savings which would strengthen banks.

As long as our government will print money to solve the problem then we are no better than the idiot who thinks another credit card will solve his problem.

If memory serves, the last time this happened, late 50's I think, our government had to issue 8% and 12% bonds just to stop inflation and get back on track.

Obama is nothing but a mirror of what is wrong. You can not spend yourself rich.

If that was so you would all be bowing to me. :D I know how to deficite spend. I do not know how to defecit save and neither does our president.

boxcar
05-21-2009, 11:25 AM
The problem with credit cards is that too many people use credit cards to just live. Credit card companies prey upon those people and they should be regulated. 24% interest, annual fees and late charges are not credit cards. Neither are prepaid credit cards. Those are rip offs. People that are that broke today will be that broke tomorrow.

The real solution is to find a way to reduce monthly rents and utilities. I would venture a guess and say if you could lower those figures you would lower the indebtedness of the population because more disposable money would be used to pay bills and to increase savings which would strengthen banks.

As long as our government will print money to solve the problem then we are no better than the idiot who thinks another credit card will solve his problem.

If memory serves, the last time this happened, late 50's I think, our government had to issue 8% and 12% bonds just to stop inflation and get back on track.

Obama is nothing but a mirror of what is wrong. You can not spend yourself rich.

If that was so you would all be bowing to me. :D I know how to deficite spend. I do not know how to defecit save and neither does our president.

So, let me see if I have this right: In one breath you're accuse the CC companies of being "predators" who should be regulated. But apparently, this isn't the real problem because in the next breath you say the "real solution is to find ways to reduce monthly rents and utilities". Well then...why aren't you demanding that the government regulate these two industries, as well!? :bang: :bang: In fact, since these two industries are the "real" problems -- since there are perhaps more crooks in those two industries that in the CC industry, why even bother with the CC companies?

Where do we stop with government regulations -- government control? After we're all literally in shackles? When slavery in the U.S. becomes a reality again? When we finally realize that each of us is nothing more than government property with an inventory number that can be disposed of or used by the state according to its good pleasure? Is that when some of us will wake up and discover, we've lost all our individual liberties?

Boxcar

HUSKER55
05-21-2009, 01:23 PM
Boxcar you misunderstood me. First, those CC companies are predators and somebody needs to do something. If you disagree with that,... then we disagree. That is fine.

Second, the problem is people are not using credit the way it was intended to be. Working people are forced to use credit just to live and there is no end in sight. BO wants to bailout the big companies whose CEO get millions of dollars but completely forgets the the poor working civilian.

No body is going to end the credit problem until the disposable income rises for the working civilian. Too many people are sliding backward every month.

boxcar
05-21-2009, 03:01 PM
Boxcar you misunderstood me. First, those CC companies are predators and somebody needs to do something. If you disagree with that,... then we disagree. That is fine.

I have been doing something all my adult life about these "predators" so called. All my life my wife and I have made decisions, nearly on a weekly basis to NOT get sucked into the credit card cesspool. Would not these choices we've made all these years fall under the heading of "doing something"? Why do I need the state to do for me what I can do for myself?

Second, the problem is people are not using credit the way it was intended to be. Working people are forced to use credit just to live and there is no end in sight. BO wants to bailout the big companies whose CEO get millions of dollars but completely forgets the the poor working civilian.

No body is going to end the credit problem until the disposable income rises for the working civilian. Too many people are sliding backward every month.

And who is mainly at fault for the this state of affairs? Is it not the Money Monster who can never get enough of our tax dollars? And, yet, you expect and want the state to fix the problem they have created all these many decades? The only way to fix the problem is for the state to get out of welfare business, shrink government, bring government in line with what the U.S. Constitution mandates for it, reduce taxes drastically and drop the current Marxist-friendly tax system and replace it with a transparent national sales tax so that We The People get more control over the purse strings of government. This, sir, is how we'd get everyone more disposable income.
But this isn't going to happen because the government wants to confiscate as much of our personal property as possible. They want to control us. The last thing they want is for us to reign them in.

Boxcar

The Judge
05-21-2009, 04:33 PM
Most City and Counties have some type of regulatory body that controls when and how much the various utilities companies can charge their customers and many while not most cities have rent control.

In San Francisco its the Public Utilities Commission and the Rent Control Board. They PUC is a rubber stamp and rent control only works for long tenants who don't move. Many buildings are except from regulation.

applebee
05-21-2009, 04:51 PM
if you look at the cash call commercials, the small print says something like 99%!!
:eek:
Im an auto tech by trade. Guy needs 400.00 worth of work goes to payday loan joint brings car back and left the loan sheet in his car. 377.17%APR.
I couldnt believe it.

cj's dad
05-21-2009, 07:15 PM
:eek:
Im an auto tech by trade. Guy needs 400.00 worth of work goes to payday loan joint brings car back and left the loan sheet in his car. 377.17%APR.
I couldnt believe it.

Substitute $4 trillion for$400.00 and the US for car and leave the 377%
interest and it sounds like what B. Hussein Obama did to the citizens of this country.

Marshall Bennett
05-23-2009, 09:22 AM
Appears the last few post of this thread were deleated , any reason ?

PaceAdvantage
05-24-2009, 06:51 PM
It's all a blur at this point...

Tom
05-24-2009, 07:55 PM
It showed up on the front page, but not in the thread. Erie.......like ghosts of retreads are haunting the place! :eek::eek::eek:

PaceAdvantage
05-24-2009, 09:33 PM
Some ghosts aren't even aware that they are ghosts...only folks with special equipment (me) are able to see them...:lol:

Never did fix that front page glitch though...lol

Lefty
05-25-2009, 12:27 AM
I have credit cards and most have a 10,000 limit. One company just knocked me down to $3500. The credit card legislation is affecting me already. I pay them on time, and always pay more than the minimum. "A good customer."

chickenhead
05-25-2009, 02:23 AM
what is your sum total credit limit, what is your income, how much debt do you revolve, and what is your credit score?

Banks and credit card companies have been slashing limits for months -- or at least I have been hearing people who think they are good credit risks whine about getting their limits slashed for months.

You might have noticed many of these lenders are at least borderline insolvent at the moment. This generally makes them a little wary about loaning money.

Lefty
05-25-2009, 03:40 AM
Much too private. My credit score is in 700's.
I haven't been slashed till now, and when I talk with them, i expect it to be reinstated to

$10,000. If not, They are out.

chickenhead
05-25-2009, 10:02 AM
well if you really do revolve a balance I'd suspect that is your problem. I have talked to quite a few people (I own stock in two of the big credit card lenders so I'm always interested in what they're up too) who have had their limits slashed -- 100% of them carried a balance.

No matter why you are doing it -- they take it as a sign that you are in a weak position financially and they try to limit their downside risk. The absolute worst sign so far as I can tell, is someone who always pays off monthly, who pays off less than the full amount all of a sudden. This is a huge red flag.

If you really want to keep all your credit -- I'd suggest paying them all off monthly in their entirety.

Overlay
05-25-2009, 10:38 AM
well if you really do revolve a balance I'd suspect that is your problem. I have talked to quite a few people (I own stock in two of the big credit card lenders so I'm always interested in what they're up too) who have had their limits slashed -- 100% of them carried a balance.

No matter why you are doing it -- they take it as a sign that you are in a weak position financially and they try to limit their downside risk. The absolute worst sign so far as I can tell, is someone who always pays off monthly, who pays off less than the full amount all of a sudden. This is a huge red flag.

If you really want to keep all your credit -- I'd suggest paying them all off monthly in their entirety.

To me, from a "common-sense" standpoint (which apparently counts for nothing anymore), how could paying off your credit card bills in full every month (regardless of the balance that you run up) work against your credit score? However, I've seen different spins on that, like this article:

http://articles.moneycentral.msn.com/Banking/YourCreditRating/7FastFixesForYourCreditScore.aspx

"2) Use your cards lightly. Racking up big balances can hurt your scores, regardless of whether you pay your bills in full each month.

"What's typically reported to the credit bureaus, and thus calculated into your scores, are the balances reported on your last statements. (That doesn't mean paying off your balances each month isn't financially smart -- it is -- just that the credit scores don't care.)"

chickenhead
05-25-2009, 11:10 AM
To me, from a "common-sense" standpoint (which apparently counts for nothing anymore), how could paying off your credit card bills in full every month (regardless of the balance that you run up) work against your credit score? However, I've seen different spins on that, like this article:

I think your common sense view is right. Paying off your balance in full is never a bad thing, for your credit score or for anything else. Its because they base the credit score on the balance accumulated, not the amount revolved -- like they talk about in that article, that this is so. Essentially your credit score only knows if you are late.

If your credit utilization gets too high they consider that a bad thing -- same thing tho, regardless of whether thats accumulated balance that you carry or one big purchase you made that you plan on paying off. I saw this recently on my credit report - I was bit angry because it had my credit utilization at something other than zero, even though I pay it off monthly. I use it just to get the rebates, so I've transitioned as much as possible onto it. But thats the way they figure it.

DJofSD
05-25-2009, 11:14 AM
Much too private. My credit score is in 700's.
I haven't been slashed till now, and when I talk with them, i expect it to be reinstated to

$10,000. If not, They are out.
Lefty, is you are not able to negotiate successfully to have you limit restored, whatever you do, do not cancel the card. That will negatively affect your credit score. Just don't use the card or the bank any more.

ezrabrooks
05-25-2009, 11:22 AM
Just for security, I, on my own, reduced my Credit Limit. I was told by the two CC companies that I use that my Credit Score would suffer by this action, even though I do not retain a revolving balance. I did it any way.

Ez

BlueShoe
05-25-2009, 02:24 PM
Recently,without warning,Bank of America(detest B of A,many reasons) cut the available credit on my card in half.Now,this was a high limit that I never even used 10% of,and,as mentioned earlier,always pay the charges in full each month,never incurring any interest charge.The new lower limit is reasonable,and did not really concern me,at first.Now am having second thoughts.The B of A rep stated that the line was reduced in order to more reflect my card usage history.Im okay with that,but am concerned that this move will hurt my rating with the bureaus.Am I being concerned for nothing,or is my uneasiness legit?

chickenhead
05-25-2009, 02:41 PM
so long as you are not using a high % of your total credit each month, I don't think it makes much difference at all.

Lefty
05-25-2009, 07:15 PM
It's not about whether oner is carrying a bal or not. it's about what Congress did.

chickenhead
05-25-2009, 07:31 PM
It's not about whether oner is carrying a bal or not. it's about what Congress did.

I've told you why I don't think it is, why don't you share how you know (apparently) that it is. Seriously, I'd like to know. Did they tell you that?

Lefty
05-25-2009, 07:40 PM
When thisnew law was enacted financial advisors quickly advised that credit card companies would be lowering limits and even enact annual fees. then BAM, it happed to me and Blueshoe. It was all over the telly. I guess you missed it. The latter hasn't happened to me yet, but i fully expect it.

chickenhead
05-25-2009, 08:16 PM
someone on your TV told you to blame your problems on the government, and because you are inclined to do that, you unquestioningly did?

That's what I thought.

There is nothing in that bill that would cause an increase in credit line cuts for good customers, beyond what has already been happening naturally (it's been all over the telly, maybe you missed it, they are calling it the "financial crisis". Hundreds of billions in credit line cuts. Not as speculation but reality).

They did not warn about credit line cuts for good customers, because it's not an expected consequence. They warned about it decreasing credit for the most borderline customers, because they are now limited on the interest rates they can change. They warned about other things for good customers. Other things that haven't happened to you.

You can believe that or not, I know being correct has never been high on your agenda, so long as you're right.

Lefty
05-25-2009, 08:22 PM
I can guarantee you, i'm not a borderline customer. They don't give ten grand limits to borderline customers. As for your parting shot, kinda expected.
So here's one for you: oh, never mind...I won't sink that low.

chickenhead
05-25-2009, 08:57 PM
They don't give ten grand limits to borderline customers.

They gave $700,000 houses to unemployed illegal immigrants, but that's not really the point.

This all started with me suggesting you would look less risky to your lender if you didn't carry a balance. Which is 100% accurate. And the only reason they cut someones line is to limit risk. I'm not saying you are some kind of dead beat -- I am saying you are making yourself look riskier than you really are.

Lefty, seriously, I come in peace. You always think I'm lying to you, I don't know why.

Warren Henry
05-25-2009, 10:20 PM
[QUOTE=Lefty]They don't give ten grand limits to borderline customers. QUOTE]


Sure they do. They gave me a much higher limit which I abused. They just didn't realize until I blew off some big numbers that I was borderline. :blush:

boxcar
05-26-2009, 05:25 PM
someone on your TV told you to blame your problems on the government, and because you are inclined to do that, you unquestioningly did?

That's what I thought.

There is nothing in that bill that would cause an increase in credit line cuts for good customers, beyond what has already been happening naturally (it's been all over the telly, maybe you missed it, they are calling it the "financial crisis". Hundreds of billions in credit line cuts. Not as speculation but reality).

They did not warn about credit line cuts for good customers, because it's not an expected consequence. They warned about it decreasing credit for the most borderline customers, because they are now limited on the interest rates they can change. They warned about other things for good customers. Other things that haven't happened to you.

You can believe that or not, I know being correct has never been high on your agenda, so long as you're right.

Well...you might actually be right for a change. :) My wife's credit line recently realized an unsolicited increase (modest -- but still an increase) by one of her CC companies. Things are really looking up for us. Now we can go out on a drunken sailor's spending binge. :D

Boxcar