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Saturday, August 15, 2020
A Viewer Writes: Credit Crunch
Hi Joe, let me just say I am a daily reader of your blog, you have my support 100%. The reason for this correspondence is I would like to know if you have heard of anyone else experiencing what happened to me today. I received an email from Capital One, of which I am a long standing customer, that they are reducing my credit limit from 20k to 5k. I am a semi-retired contractor of reasonably substantial wealth who pays his balance every month, have not ever missed a payment in over 10 years as a customer, and I have a credit score over 800. I have two cards with them and a savings account. I called their customer service and they refused to allow me to keep my 20k credit limit. I have a couple other cards, one with a 30k credit limit. So I guess I will no longer be a Capital One customer after my next billing cycle. What is going on? Is this a covid related deal that they are worried about people running up their balances? Are other credit card companies going to follow suit? This has me really concerned about the average person being able to get credit. A very wealthy friend of mine is in the process of buying a house and was told to finance a mortgage he would need 70% down because he is retired and has a "fixed income". So he is just going to pay cash, which works for him but the average person? People better wake up to what is coming, it's not going to be good for average Joe. MAGA, Trump 2020
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21 comments:
America in Ruin 2020 !!! Thank the Democrats & China !!!
My son was stopped form financing a $10,000 truck after paying off another &10k loan in full. His limit at that local bank went down to $4k. Probably due to people losing their jobs or having their income reduced because of "CDC guidelines". It's time to admit this disease has a viable treatment and most of us have already had convid and breezed through it. I did and I'm 66. Let's get back to work!
This is sad but not unusual. Many banks and other lenders see the handwriting on the wall and are limiting their exposure and potential of losses. We can expect to see more of this as businesses close, people lose their jobs and the world just generally goes to hell in a handbasket.
My Capital One card's limit went from $15K to $4K. I called and was told that it's an industry trend now, but that I could get a higher limit by request. I have no credit card debt, I have no loans, my house is paid off and my credit score hovers at 830.
My credit score cannot get any higher and I've not experienced any limit reduction.
Why do you care? If you are "of reasonably substantial wealth" etc. then you should be able to pay for things you can afford. When did credit limit become cash in hand? If "average" people can't borrow, why is that a problem? Each of us can afford what we can afford and we can't afford what we can't afford.
Here’s an idea. Pay with cash. Stop relying on someone else to finance your lifestyle. If you don’t have cash, don’t buy it. They lowered you vey they aren’t making a dime off of u, in fact, if you pay it off every month they’re losing money. It’s not rocket science.
What in the world makes you think Joe has the answer to this why??? Smh.
Kabbage a small business lender cut off all business lending a couple months ago stating uncertainty in the economy.
I just called and went from $4K to $12K.
Y do u need credit if u have money? Available credit is a liability to the creditors in this pandemic
Silly rabbit.
The credit crunch isn't a product of COVID.
COVID was invented because of the collapse of the US Dollar.
Governments cannot allow private for-profit Central Banks to issue fiat currency from thin air.
The US Government is controlled from Tel Aviv and London.
It is being deliberately collapsed.
The only thing the US Government does well now, is kill people.
For Israel.
The four year reign of the Trump/Pence/Putin team and their handling of the pandemic has nothing do do It! KAGA 2020!
They are not losing money. The vendor you purchase from pays a fee for the convenience of you using the card for a transaction. Nothing is free, everything has a tarting. Even the freeloaders that government pays and feeds are paid by us working tax payers. We are the government and we’re not operating very wise.
I would not deal with that bank. I had a relative that was elderly and had very little money. Capital One let him charge a large amount that he could in no way pay. The family contacted the insurer for the card and they forgave the balance owed. What did Capital One do? They sent him another card with a credit line that he used to the maximum. He passed and they went after his immediate family and we told them to stick it. Haven’t heard from that crowd since and don’t plan on using them.
Credit is Only given to those who don't need it (Normal) so don't expect
anything if you do need it !!! FACT
Unsecured credit cards are a terrible way to pay for things.Buy gold and silver now and as far a a 800 plus credit rating if thats so why are you using unsecured credit cards to float you lifestyle?
That country is broke and most of its citizens spending there credit.
I am so tired of hearing these 10 cent millionaires whine the blues.
I just read about this happening in the MSM a couple of days ago. I think it also happened in 2008. I know it happened to me one time before. No reason on my end. Credit score was in the upper 700s and had NO late payments. It is the banks trying to tighten up as they are afraid they are going to lose a lot of money with people trying to live off of credit cards if they don't have any income.
My AMERICAN EXPRESS went from 36,000 to 15,000. But they said the reason was that I didn't use it in a while. My wife and I just were approved for a 400,000 mortgage yesterday. Tell them to either put it back up or you're canceling the card.
It is just like the "fake" coin shortage.
Banking got the majority of the 6 trillion dollar stimulus package that was meant for small business survival. Of course they are tightening the reigns they got the money you didn't. Who needs a multi thousand dollar line of card credit ? I use mine and pay them off monthly just for the rewards. American Express was much better when you HAD to pay your monthly balance to be a member. When they got into lending their purchasing and customer support went down hill it use to be the most secure. The problem is people run their households and rinky dink little businesses on credit and don't know the difference between principle and interest. I have known many that every time the interest rate lowers refinanced their homes and took the appreciated equity. That's not ownership that's renting. They think it's a game.
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