Credit Card Companies Closing Credit Lines as Financial Crisis Continues
Credit card companies, responding to their own financial problems, continue to tighten the noose around their customers. Discover, Capital One, and other issuers are closing accounts of cardholders who have not used their cards in the past 6 months or more.
Since we advocate cutting up your credit cards, this is not the end of the world, as we see it, since dormant credit cards are a sign that your money management may be on the right track. However, the residual effect of this is that it is possible that these actions will lower the credit scores of those consumers, which can lead to higher payments in some situations.
These actions are further confirmation of the wisdom of Proverbs 22:7, "The rich rule over the poor, and the borrower is servant to the lender." If you're already out of debt, a few cancelled credit cards are not a big deal. However, if you're living off your credit cards, moves such as these from the credit card companies can be extremely damaging.
Click here to read more from Bloomberg.com.
Since we advocate cutting up your credit cards, this is not the end of the world, as we see it, since dormant credit cards are a sign that your money management may be on the right track. However, the residual effect of this is that it is possible that these actions will lower the credit scores of those consumers, which can lead to higher payments in some situations.
These actions are further confirmation of the wisdom of Proverbs 22:7, "The rich rule over the poor, and the borrower is servant to the lender." If you're already out of debt, a few cancelled credit cards are not a big deal. However, if you're living off your credit cards, moves such as these from the credit card companies can be extremely damaging.
Click here to read more from Bloomberg.com.
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