julienne - thanks for the good news! Don't file the big "B" if you don't have to is my advice to the readers. It is over eight and a half years and most banks affected by the big "B" won't touch me. Yikes!

This is REALLY good reading]http://www.usatoday.com/money/perfi/credit/2010-03-10-creditcards10_ST_N.htm[/URL]

Very interesting read indeed! Before, I really thought that the decrease in credit card debts was totally attributed to consumer payoffs. The article has also given me an idea what to do if I'm way over my head paying my credit card debts.

This is REALLY good reading:

http://www.usatoday.com/money/perfi/credit/2010-03-10-creditcards10_ST_N.htm

I can respect that 100%. But do you think the rich would use a loan as capital? Huuuummmm, I believe the average would, but not the rich. Since business is my major, I do know that small business owners would apply for a loan or gov grant, that is the route I am taking, but if I had my own money (saved money or partners money) I would not apply for any loans.

I was totally mentioning people that are rich or have good money, they do not turn to cc for paying for purchases, they come out of the pocket. But since creditors tends to turns to the rich much faster, they need to realize that a loss can come from them as well. You never know what may happened down the road. Take a Dr for example, he has good money, cc offers start to fly through the mail, such as no preset what-so-ever, or black cards. So the Dr, made a dumb mistake which cost his license to be provoked, wife left him and sued him in alimony due to infidelity, and now he is losing everything. What do you think is going to happen? Bye bye credit cards, and if he had a mortgage, bye bye to that too. The only problem is that, you lost most more with the Dr, than you did with with me. You only gave me $2k in cl, the doc had God knows how much in debt with you. Not only that, he is going to charge up the yin yang asap, and then file bk with you.

This is what I meant about it's all a gamble, just because someone is rich or wealthy, does not mean that they are going to end up slapping you in the dog house. He may be gone for broke, but he will end up with another card, starting off just like we did. The more money the merrier, is that a true saying?

I disagree Meya. The wealthy also need credit. Most that start a business and have cash on hand will use their assets as collateral and get a loan vs putting up their own assets. If the business prospers and they expand, they would rather collaterize the loan for future needs than put up their own wealth.


For example I don't think Bill Gates thought MicroSoft would take off like it did and had he to depend on his current assets to fund expansion at that time would MicroSoft be where it is today ?


Just a thought..............

Well I guess that is the way that banks make money. It's all a gamble! If they only selected those with good to excellent credit, they can loose from the same way they can someone with bad credit, like a loos of a job, divorce, lay offs, disability..etc.

Yes, it is all a gamble...and the bank like the casino...well, the house ALWAYS has the advantage!

I agree with both posts.

Well I guess that is the way that banks make money. It's all a gamble! If they only selected those with good to excellent credit, they can loose from the same way they can someone with bad credit, like a loos of a job, divorce, lay offs, disability..etc.

People were not born with good credit, and some of everyone will come through the unforeseen. That is why I think that banks take chances on re-builders, because there is a chance that they can make more money from them than from someone who has excellent credit that will pay the balance of much sooner than a re-builder. The number one thing that I have to agree with is when you mention that banks do their homework by soft pulls. They should not only do this to look for customers but to keep track of the ones that they currently have.

They are not going to too much find a perfect candidate because the more money a person has, they deal with cash majority of the time. In other words, rich people do not deal with credit, they cash and carry.

Personally. I think banks were doing a fine job of evaluating potential customers for credit lines. And that include sub-prime banks like First Premier and Capital One. I had terrible credit when I received my First Premier card. They slapped horrific fees like a typical loan shark, but that is the price I had to pay for defaulting on past credit lines. First Premier issued me a VERY LOW credit limit of $350.00 and the fees took up over 60% of that initial credit line. I paid dearly, but it is what got my butt back on track (creditwise). I paid those fees with little to no reluctance because I was begging for trust again.

Then Capital One in their most mysterious marketing way, had been monitoring my credit with soft pulls for the first year I had that First Premier credit line. They saw that I did not miss a beat and they issued me an offer. I accepted it and my first limit from Capital One was $300.00.


I think the biggest risk taking banks, with regards to credit lines, are banks like WaMu (formerly Providian and now JP Morgan Chase) and other sub-prime banks that issue credit to people who have no credit history at all. I state this because when I was first in the market for credit, Providian took a chance on me and I wound up defaulting due to youthful irresponsibility. Citi issued me a Student Associates mastercard and I wound up defaulting on that one as well.

Bottom line, credit issuers who run soft pulls on people rebuilding their credit have done their homework before making offers. Creditors like WaMu that had nothing to work from, no credit history to evaluate potential customers, are taking the biggest risk. It is no surprise to me that WaMu has needed to be bailed out. It is no surprise to me that Citi is having some difficulty as well...

I wonder which banks will be standing in 10 years from now?

Once the financial industry rights its ship, the banks left standing will still search for customers. Let us not forget that the bank's largest asset is its customer base. Banks will still look for customers, the one's with scores over 700 will get priority treatment, while other, non tier one customers will still be courted by the banks but the perks won't be as great, but the chance to improve will always be there.

If your fine now, you will be fine when the dust clears, for those near the mountain top, the length to the top won't change, its just that the footing will be more challenging.

Credit Unions have their place, don't get me wrong, but the banks are going to survive this and continue on.....................

I have drastically reduced my credit card charging activities from June 2008. I rarely charge and if I do, I pay off about 70% that same month.

I'm not going to be applying for more credit with the big banks, just CU's.

The credit industry will re-shape itself dramatically and make it more difficult to its borrowers to default and make it harder for others to re-establish themselves. I have noticed a ton of soft pulls on my credit file lately from all my current creditors. I wonder whats going on. I have banned all credit card use personallly and business wise as well. I'm sticking strictly to A/R's and cash.

I wonder will they open better doors for me when its all back together.