Thread: If the banks retrench again will Discover Amex and Chase again be most conservative ?

With a growing discussion about European debt problems that will wash over to the U.S. and the possibility of a slowing American consumer economy, those credit card issuers which have the least amount of diversification, the least amount of capital or the greatest historical tendency to may be the ones who who pull their belts in the fastest. Legislation took away a good deal of flexibility for them to use interest rates as a "throttling" tool, which implies the real possibility of issuers who reflexed the most in 2008/ 2009, my sense being Discover, American Express and Chase, pulling in credit lines.

My sense was that even though they had real and serious challenges, Citi and B of A were able to keep a strong committment to their existing card portfolios, but reigned in new growth during the last downturn, whereas Discover, American Express and Chase did a fair amount of very public "pruning" to their existing customer base.

Not only a esoteric discussion but a suggestion to consider having a diversified and broad range of credit from different banks in your wallet.