Dealing With The Next Crisis - Credit Cards

[Dover]

Forbes -

....Lenders are going to start raising the standards of who they loan money to and how the consumer pays them back. It may seem just as easy to get a credit card today as it was yesterday, but the terms and how much you can extend your credit limit are probably going to be stricter.

You can expect to see more serious consequences for missing a payment. Some lenders are lowering credit limits or hiking up interest rates after just one missed payment. When credit scoring companies, such as Fair Isaac Corp. (FICO) see these negative shifts in your credit, your credit score is probably going to go down. Be aware that some credit cards are decreasing credit limits or increasing interest rates even if you're not at fault. Be sure to monitor your credit card statement. Lenders are allowed to increase your interest rate without even telling you.

You will find that your credit score is going to matter more now than it ever did before, and you'll want to protect it. Credit card companies are not the only suddenly more cautious lenders out there. For example, you may find it harder to get a car loan and you may see student loan interest rates going up. "Lenders are going to be cherry-picking customers," says Gerri Detweiler, author of The Ultimate Credit Handbook: How to Cut Your Debt and Have a Lifetime of Great Credit. You're probably going to need a decent credit score to get a good deal on a loan. Expect to need a credit score about 100 points higher than what you may have needed in the past for a particular loan...Cont'd

http://www.forbes.com/personalfinance/2008/10/31/credit-crunch-crisis-pf-ym-in_avb_1031youngmoney_inl.html

[ixion]

1. that's fine...we'll get more strict with the "bailout" terms

two can play at that game.

We'll charge the banks 30% interest and 100K service charge if they miss a payment. All's fair, after all. :evilgrin: