Store cards tightening up?

Where you can talk about store credit cards, like gas station cards, department store cards, etc.
6 posts
1bootcamp
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Store cards tightening up?

Postby 1bootcamp » Thu Sep 04, 2008 10:58 pm

This must be a sign of the times.

My buddy applied for a Target card and was declined. I know how doesn't have perfect credit but he doesn't have bad credit either. Only reason it is jacked up is because he uses a high part of his limits on his cards. he always pays them on time though.

I though anyone with a pulse and a signature could get these things but it looks like the credit crunch has even trickled down do store credit cards too. They usually offer lousy rewards, if any. The only reason people get them is to buy things they can't afford with cash. Now they aren't even doing this. Can you imagine what Christmas is going to be like this year?


magyar1045
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Postby magyar1045 » Fri Sep 05, 2008 7:58 am

Partially it is the socalled credit crunch and of course that on his other cards he is close to the limits. But I think what is really happening is that these creditors are afraid that Obama will become President and that with Democrats controlling both houses of Congress the Bush/Republican 2005 bankruptcy laws, or at least most creditor friendly [rovisions will be done away with and more and more people will become eligible for Chapter 7s - a total wipeout of debts. Creditors are now shaking in their booths.

milkman
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Postby milkman » Sat Sep 06, 2008 1:24 am

The economy is sooo shot so this should come as no surprise to anyone unless your name is George Bush who is oblivious to the whole thing....

KC95
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Postby KC95 » Sun Sep 14, 2008 1:40 am

my question is what will happen to all these stores that depend on things like store credit cards for business. a lot of the shops out there aimed at low income and urban places a lot of times no one would buy from there if it wasn't for the financing. this is going to create a domino effect because if you reduce lending you reduce spending and that reduces jobs even more...
:(

so much for the "trickle down effect" effect working mr bush! :mad:

Floppster
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Postby Floppster » Mon Sep 29, 2008 9:38 pm

Is anyone surprised that the bubble all of the sudden blows up ? I mean frankly people with an annual income of $35k having $20k available credit limits, people with a monthly income of $3,500 having a mortgage which costs $3,550 a month. Banks screwed themselves. Let's face it, why should anyone have a higher CL than 2 x monthly income ? How many people live way above their means. If... was never the question it was just when. It doesn't matter if we bring in Bush Jr, Clinton, Daddy Bush, Reagan or Carter fact is just that everybody knew that one they it will turn into trouble. 1 + 1 still equals 2 and not 3
Intellectuals solve problems. Geniuses prevent them.
- Albert Einstein 1879-1955

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Mogul of Pineapples
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Postby Mogul of Pineapples » Tue Sep 30, 2008 4:23 pm

The only thing I'm surprised of is that the credit party lasted this long. You're right it's nuts to think people could easily get approved for mortgages that were more than their income and credit limits which matched their annual income - on each card!

What there should be is restrictions of your total credit based on income. i.e. if you make 35k a year, all of your revolving credit combined can only be 35k, etc. It may sound nuts to regulate this but the SEC regulates how much stock a person can buy on margin so I don't see why this is much different.
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