ICFE eNEWS #09-06 - March 16th 2009
Attention: ICFE Certified Credit Report Reviewers
Credit Cards Are the Next Credit Crunch
A November of 2008 ICFE eNEWS titled "Credit Card Holders Beware: Because Universal Default is Now in Stealth Mode" pointed out ways credit card issuers are aggressively look for ways to cut credit lines and account holders.
This retreat from new credit offers and expanding lines of credit is even affecting creditworthy consumers. Gone are the low-ball teaser rates and zero percentage rate balance transfer offers. Lenders have been tightening their standards for new account holders and to combat the still rising tide of negative accounts, managers are looking for ways to identify their present account holders ahead of time who might be headed for trouble and thereby lessen their losses. Some major card issuers are closing down inactive accounts and reducing lines of credit. Gone too are the generous rewards programs as more and more lenders cut corners to save money.
This link is to a Wall Street Journal article which has some good observations about the trend of cutting credit card limits and accounts -- which of course lower credit scores. It is a "must read" for ICFE CCRRs and interested others. View the article Credit Cards Are the Next Credit Crunch
President - Executive Director
Institute of Consumer Financial Education (ICFE)
ICFE - Institute of Consumer Financial Education - ICFE.info - customer.service@ICFE.info - 619.239.1401