I thought it was supposed to be HARDER to get credit...

[boosami]

With the recent recession and all, I thought creditors were tightening things up. I just heard a friend of mine got a $5,000 limit credit card with no job and zero stated income. And I thought it was supposed to be harder to get a credit card these days... I know she has a good credit score, but WTF banks?

[Joan.of.the.Arch]

She really told them she had zero income? Did she just say she had no employment income? And then maybe she told them what her household income was. If they consider the income of a spouse or some other source, maybe they consider her a good risk.

[disneysteve]

I don't know that it is hard to get credit if you still have a top tier FICO score. What has changed is that lenders are looking for higher FICO scores to approve people. I read the other day that GMAC is no longer making ANY auto loans to people with FICO scores less than 700.

As for CC companies, they'll never learn.

[Alex_Adviser]

People with good credit scores are still at advantage of getting credits. That is because of their clear credit histories. Your friend can be one among those lucky people.

Or otherwise she could have got a secured credit card, which is even easier to get.

Regards

[neguy11]

Or maybe she just lied about her income? I don't think they actually verify what you list for your yearly income.

[billy1980]

If you have a good credit scroe i have not see many instances where credit is refused. Compnaies want you to spend after all.

That said if all the above parameters are true regarding income etc I believe this to be the kind of irresponsable lending that got us in the situation we are in.

[m.f.walters]

I have 4 credit cards, 3 with low rate balance transfers which once paid off won't be used at all. I have one active card with a fairly high balance compared to its credit limit. I have gotten 2 letters in the last 2 weeks, one from Chase and one from BOA congratulating me on my new higher credit limits!
I guess my credit is good, but I'm fairly leveraged and I keep waiting for one of the bad letters Suze Orman is warning about-but I get higher credit limits! To me that is bad news, too. I agree-what is up with these banks!?

[ksluis62]

It seems schizophrenic. They want to manage risk on one hand, yet they know they need a large customer base to maintain business in the future. I think they're struggling with balancing these issues.

[boosami]

On this subject, Barclays just released a new "super luxury" credit card. It's called the "Black Card" and it (supposedly) is competing with the Amex Centurion (which is usually called the Black Card). In reality, rewards and exclusivity are not even close to the Amex Platinum. Annual fee is $495.

Great timing, Barclays! Right in the middle of a freaking recession.

https://www.blackcard.com/

[Bluestreak]

They are removing credit from non-using clients and making it available to heavily potential clients during tough times. It's money in the bank for these guys, so they think.
I had a card with 50k that has been reduced to 35K because they know I am not going to use it. They greedily need money and they are doing all they can to possibly maximize their short term profits during the tougher times.

[billy1980]

I you have a top notch credit score you should still be able to get credit somewhere. Also cause for concern in a recession it is good to see the banks starting to loosen up a little bit more now.

[reptile411]

My scores stick around the 630 area and I just realized a credit increase on my cards as well as purchased my first home a couple months ago. its not hard to get credit really.

[SoFLGuy]

I was approved by Capital One this week for an auto loan. My credit score is around 625, and I've been denied quite a few times recently. Although the interest rate is rather high I can afford to make payments for the car I am looking for (Hyundai).

Plus with Hyundai's Assurance program (now extended to 3 years after purchasing a new car) if I lose my job as least they will buy it back. I desperately need a car, so why not get one that won't break down on me. That certainly give assurance in a time when folks are unsure of the future (pun intended).

However, right now may be a great time to buy a used car as well seeing folks aren't trading in clunkers for new ones. You may be able to find a good repo out there these days.

[disneysteve]

Originally Posted by SoFLGuy

Plus with Hyundai's Assurance program (now extended to 3 years after purchasing a new car) if I lose my job as least they will buy it back.

Make sure you understand those terms. I believe the maximum they will buy back is $7,500.

[GREENBACK]

Originally Posted by disneysteve

Make sure you understand those terms. I believe the maximum they will buy back is $7,500.

I agree 100% with this. I don't know the details of the whole buy it back program but I would absolutely read that deal line by line. This crap is drawn up by attorneys and accountants who don't have your best interest in mind. I'm pretty sure the dealerships will win in this scenario but, again, I haven't seen one of these agreements.

[disneysteve]

I did hear on the news yesterday or today that Hyundai was the only car maker who saw sales rise in the last period and they attributed that to the buzz from this "guarantee" so at least on a marketing level, it is doing just what they had hoped.

[workingmamma]

So what do the folks with less then perfect credit do? I am sure they are going to be left out in the cold until this economy turns around. I know I live in a small town and in order to buy a home they have increased the amount you must have down to purchase.

[manageME7]

Having possession of credit cards makes you habitual to it. You are impelled to buy the things which may or may not be useful at the particular moment.
It makes you spendthrift I your spending habits.

Credit cards are great if used wisely. Use it in times of emergency or when you are sure of paying it back within a required time. Whether the economy is in recession or in booming phase, just try to use the credit cards more judiciously.
Life is so simple, do not make it difficult. Just try to manage yourself.

[lebaggblu]

Agreed