Mogul of Pineapples
- Centurion Member
- Posts: 1271
- Joined: Sun Jun 01, 2008 11:32 pm
- Location: Smogland
What has happened the last few days and weeks looks like it will have a big impact on credit cards. Strangely, credit card companies will probably end up untouched from this whole mess. I know Visa and MasterCard don't lend money directly and American Express and Discover sell off most of their loaned money. They will be safe because they are making their money off transaction fees whether the customer pays his bill or not. I don't think they will be really hurt because of this but with all the new mergers and acquisitions in the financial sector the issuers will be changing hands.
Bank of America & Merrill Lynch: Both of them issue credit cards seperately and now they will be one company.
Washington Mutual: They're saying this will get bought out because it's in trouble. Citi maybe?
Morgan Stanley: They have some cashback credit cards but more overseas, like the Buy and Fly card. Who will own them now?
Credit limits will be lowered since there is less money to go around. That means if you carry a balance you may have to pay it off or open another card and do a balance transfer to keep your balance below 30% of the credit limit (which will hurt your score if you don't).
This is by far the worst condition Wall Street financials have been in since the great depression. Agree?
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.
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