Quote:
Originally Posted by PrincessPerky
My husband between all his cards (he used to take advantage of 0% and all a lot more when he had time) Has enough credit to buy two of our houses. WELL more than his yearly income.
We do not use the limit of course.
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It seems wrong to me that a reason people have huge limits is because they are left over from past accounts that they will not close because it's bad for their credit score. Not wrong on the part of the consumer, but rather on the credit agencies and how they report/determine creditworthyness.
It all can escalate too quickly because of the greed of everyone involved (consumer and creditors). The more you spend, the more the creditors want to offer you credit. The more credit you get, the more you can spend. And then everything blows up, as we've all seen in the past six months.
Before the 1970's, credit cards were difficult to obtain. These days, you can get a $1,000+ limit with no job and zero income. In my opinion, the whole mess needs to be rethought. I'm not sure how, but someone who is maxed out on a credit cards simply should not be able to apply for a second!