Sub-Prime Disaster’s Effects on Credit Cards
The sub-prime situation is very similar to that lame ass song “Have A Bad Day”… You can’t help but hear about it, it’s always playing, and it just leaves a bad taste in your mouth. However good or bad the day you were having is now infinitely worse for having heard the song and it leaves a trail of destruction in it’s path.
As expected, because of the credit crunch caused by the disaster, alot of credit card issuers are doing the following:
- Raising Interest Rates
- Lowering your allowable limit
- Freezing your card
- Tightening up their issuance of new credit cards
Now I never got why they raised the interest rates… I realize it’s to protect themselves, but it seems contradictory that in order to protect their investment, they increase the probability of a person defaulting by taking more of their expendable income.
If you live in an area heavily affected by the housing crisis, or have less than stellar credit, I would advise you to read over any changes to your terms and conditions that your credit card company might have or will send to you.
Now if I could get that damn song out of my head
“You had a bad day
You’re taking one down
You sing a sad song just to turn it around”
Tags: sub-prime, CardInform.com, Advice, Interest Rates, Banks
Interesting how he credit card rates are increasing yet the Fed is decreasing the rates in order for a “soft landing” to the market turmoil. Credit Card companies are just increasing their spread and margins.
This is why I never carry a balance.