Sense on Cents

Many credit card companies are now offering incentives for a wide range of their customers to “take their business elsewhere” and return their cards in the process. Are these companies trying to turn business away? Have they expanded too rapidly? Are they having operational issues? Are they afraid of what the future holds?  In a word, the simple answer to all those questions is YES!!

Credit card companies are already experiencing a significant increase in delinquencies and defaults and expect both those figures to ratchet higher in the face of rising unemployment. 

For those even with stellar credit, do not be surprised to see your rates and charges increase. These credit card companies have retreated into a total bunker mentality. 

How Can We Make You Go Away, from the WSJ’s Smart Money, highlights the fact that consumers should be working aggressively at paying down debts in order to avoid increased rates or a lack of credit completely.

You thought being a loyal customer meant something. At desperate times, desperate companies will take desperate measures.    

LD

This entry was posted on Saturday, March 21st, 2009 at 2:11 PM and is filed under Credit Card companies, Credit Risk, Current Affairs. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.