Comments on: Why are credit card companies closing credit on customers out of the blue? http://whentofilebankruptcy.org/why-are-credit-card-companies-closing-credit-on-customers-out-of-the-blue Consider All Your Options | Free Tips, Q&A and Online Resources Thu, 29 Dec 2011 01:20:45 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Michael T http://whentofilebankruptcy.org/why-are-credit-card-companies-closing-credit-on-customers-out-of-the-blue/comment-page-1#comment-4456 Michael T Mon, 08 Mar 2010 06:10:22 +0000 http://whentofilebankruptcy.org/why-are-credit-card-companies-closing-credit-on-customers-out-of-the-blue#comment-4456 Although wall street has been pretending that the US banking crisis is over, there are very deep problems in the US banking system. Things are going to get much worse before they get better. According to IMF estimates, US banks have lost $2.7 trillion over the past several years on mortgages. It is expected that they will lose another $1.2 trillion on credit card debt and auto loans. The amount that will be lost by US banks is greater than all the profits ever made by all US banks since it became a country. We have already seem some of the things that banks have been doing including making it very difficult for anyone to get a credit card unless they have a credit score of 720 or greater, little ability to get a conventional home loan without a major down payment and good credit score, charging very high interest rates on car loans for anyone below a 720 credit score, increased bank fees including overdraft fees (ex. B of A now charges $35 per 5 days), and increasing the interest rates and minimum payments and decreasing credit limits on credit cards. Now it appears the banks are evaluating the credit worthiness of their existing customers. They are no longer just using the credit score as an indicator but are now looking at the debts of individual customers to analyze the risk of possible default. If they feel the possible risk is too high, they are closing down the accounts. The only individuals that are likely to survive this crisis unscaved are individuals who maintain their credit score by rigorously paying their bills on time and keeping low debt rations. Although wall street has been pretending that the US banking crisis is over, there are very deep problems in the US banking system. Things are going to get much worse before they get better.

According to IMF estimates, US banks have lost $2.7 trillion over the past several years on mortgages. It is expected that they will lose another $1.2 trillion on credit card debt and auto loans. The amount that will be lost by US banks is greater than all the profits ever made by all US banks since it became a country.

We have already seem some of the things that banks have been doing including making it very difficult for anyone to get a credit card unless they have a credit score of 720 or greater, little ability to get a conventional home loan without a major down payment and good credit score, charging very high interest rates on car loans for anyone below a 720 credit score, increased bank fees including overdraft fees (ex. B of A now charges $35 per 5 days), and increasing the interest rates and minimum payments and decreasing credit limits on credit cards.

Now it appears the banks are evaluating the credit worthiness of their existing customers. They are no longer just using the credit score as an indicator but are now looking at the debts of individual customers to analyze the risk of possible default. If they feel the possible risk is too high, they are closing down the accounts.

The only individuals that are likely to survive this crisis unscaved are individuals who maintain their credit score by rigorously paying their bills on time and keeping low debt rations.

]]> By: R T http://whentofilebankruptcy.org/why-are-credit-card-companies-closing-credit-on-customers-out-of-the-blue/comment-page-1#comment-4457 R T Mon, 08 Mar 2010 06:10:22 +0000 http://whentofilebankruptcy.org/why-are-credit-card-companies-closing-credit-on-customers-out-of-the-blue#comment-4457 There are new and far reaching credit regulations coming from the Obama administration. Credit card companies are attempting to make all the changes they can before the regulations go into affect. At this point, anything in your history that might make them nervous will draw attention to your account. There are new and far reaching credit regulations coming from the Obama administration. Credit card companies are attempting to make all the changes they can before the regulations go into affect. At this point, anything in your history that might make them nervous will draw attention to your account.

]]> By: MadMan http://whentofilebankruptcy.org/why-are-credit-card-companies-closing-credit-on-customers-out-of-the-blue/comment-page-1#comment-4458 MadMan Mon, 08 Mar 2010 06:10:22 +0000 http://whentofilebankruptcy.org/why-are-credit-card-companies-closing-credit-on-customers-out-of-the-blue#comment-4458 They are doing it because your behavior points to future credit problems. They are closing accounts before they become a problem. Is this unfair? Maybe. You can certainly talk to them to see if you can keep one account open. Do you really mean that they are closing a bank account? This is odd as they have not lent you any money in these accounts. Credit card accounts I could understand. They are doing it because your behavior points to future credit problems. They are closing accounts before they become a problem. Is this unfair? Maybe. You can certainly talk to them to see if you can keep one account open. Do you really mean that they are closing a bank account? This is odd as they have not lent you any money in these accounts. Credit card accounts I could understand.

]]> By: bdancer222 http://whentofilebankruptcy.org/why-are-credit-card-companies-closing-credit-on-customers-out-of-the-blue/comment-page-1#comment-4459 bdancer222 Mon, 08 Mar 2010 06:10:22 +0000 http://whentofilebankruptcy.org/why-are-credit-card-companies-closing-credit-on-customers-out-of-the-blue#comment-4459 Chase acquired the assets of WAMU, including high risk accounts. They are clearing high risk accounts off their books. Do you not see that a bounced payment is a bad thing? Couple that with inquiries and new credit lines, it sounds like you may be in financial trouble. Even after the new laws go into effect, credit card companies will have the option of closing accounts. Creditors can't be forced to extend credit. It is not your right to have a credit card. Chase acquired the assets of WAMU, including high risk accounts. They are clearing high risk accounts off their books. Do you not see that a bounced payment is a bad thing? Couple that with inquiries and new credit lines, it sounds like you may be in financial trouble.

Even after the new laws go into effect, credit card companies will have the option of closing accounts. Creditors can’t be forced to extend credit. It is not your right to have a credit card.

]]> By: Source http://whentofilebankruptcy.org/why-are-credit-card-companies-closing-credit-on-customers-out-of-the-blue/comment-page-1#comment-4460 Source Mon, 08 Mar 2010 06:10:22 +0000 http://whentofilebankruptcy.org/why-are-credit-card-companies-closing-credit-on-customers-out-of-the-blue#comment-4460 You have to understand, don't take it personal. Banks are protecting whatever assets they have. Put yourself in their shoes and pretend that you had your own bank and you lended 500 people thousands of dollars. All of a sudden 200 of them tell you that unfortunately they can't pay you back what they have already spent and they still have available credit with you. What would you do? I would be proactive and reduce everyones lines so that I can stay in business. Your answer to that question is what banks are doing right now. Don't take it personal, instead put yourself in their shoes. You have to understand, don’t take it personal. Banks are protecting whatever assets they have. Put yourself in their shoes and pretend that you had your own bank and you lended 500 people thousands of dollars. All of a sudden 200 of them tell you that unfortunately they can’t pay you back what they have already spent and they still have available credit with you. What would you do? I would be proactive and reduce everyones lines so that I can stay in business. Your answer to that question is what banks are doing right now. Don’t take it personal, instead put yourself in their shoes.

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