Target credit card tightening terms?

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1bootcamp
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Target credit card tightening terms?

Postby 1bootcamp » Thu Oct 23, 2008 6:58 pm

It looks like Target is tightening the terms on their credit card. The was a report on AP today that said they are lowering limits even for cardmembers in good standing due to a rise in delinquencies. They also said they are stepping up collection efforts on the accounts that are deliquent.

The screwy part is they said they were using cardmember's location as the criteria to lower the credit limits instead of credit. If you lived in a high risk area from the mortgage mess like California it said your credit limit most likely would be slashed even if you were in good standing and had good credit.

This is crazy how is it legal to determine credit on where you live? I thought there were laws against that because banks would discriminate against ethnic areas.


magyar1045
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Postby magyar1045 » Thu Oct 23, 2008 7:11 pm

It's called profiling. Cops pull over African Americans in lily white neighborhoods, Insurance companies pull potential policy holders' credit reports to determine rates, and airport officials take a "closer look" at folks of middle eastern descent.

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Postby Floppster » Thu Oct 23, 2008 8:57 pm

Well I think that is a way better way doing it than it is with the credit score. If you are smart enough and know the loopholes you can get a great credit score even when you carry debt.
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fffresh
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Postby fffresh » Fri Oct 24, 2008 1:37 am

That should be illegal but a big corporation like Target would surely have their attorneys review these things before putting out a press release on it.

I have a friend that had signed up for a Target credit card this summer and he was only given a $200 limit so it sounds like they began scaling back months ago.

1bootcamp
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Postby 1bootcamp » Sun Oct 26, 2008 4:20 am

A $200 limit? What is that supposed to buy?

He must have had some awful credit!!

Floppster
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Postby Floppster » Sun Oct 26, 2008 11:16 am

1bootcamp wrote:A $200 limit? What is that supposed to buy?

He must have had some awful credit!!


He could have great Credit as well but just to much outstanding debt.
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fffresh
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Postby fffresh » Sun Oct 26, 2008 4:30 pm

You're right Floppster. He has a bad credit utilization ratio, not bad credit. He does not make late payments and no delinquencies ever. He has both revolving credit (credit cards) and a car payment (installment loans).

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Postby Floppster » Sun Oct 26, 2008 9:50 pm

fffresh wrote:You're right Floppster. He has a bad credit utilization ratio, not bad credit. He does not make late payments and no delinquencies ever. He has both revolving credit (credit cards) and a car payment (installment loans).


Yeah that can kill it too. Over the next year we will all see a lot of changes in the credit system. I am quite sure that the future Credit Score will decrease on all available or used credit lines. Only the once which do not accepts or use credit will be in the better scoring level.
Intellectuals solve problems. Geniuses prevent them.
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Postby bikermike » Tue Oct 28, 2008 12:53 pm

No biggie there. Target blows. THe Target credit card only gives 1% rewards from what I remember so no one is missing out on anything!

The last part about the best credit scores from not using credit won't happen. Credit is all based on track record anyway. Same reason they don't give the best rates for car insurance to younger drivers. You need to have a history of good usage to show you the best.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Tue Oct 28, 2008 9:54 pm

The Target credit card review
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