2 trillion goes *POOF*. What's in your wallet? (loans, credit card, american express)

[70Ford]

Credit-card users may find limits slashed just as they need money - MarketWatch

Whitney, an analyst and managing director at Oppenheimer & Co. who predicted the current financial-services industry meltdown, now says credit-card issuers will eliminate more than $2 trillion in available credit over the next 18 months.

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Hrmmm. That's interesting. $2,000,000,000,000.00 is a big number.

I just got an offer from American Express again, today. Their cashback card sucks. Wanna know why? Purchases from super stores aren't counted. Gotta spend $6,000+ a year to get 5 percent cash back. I probably put about $12-15K on mine per year, but pay it off monthly. Actually, I pay it off the same or next day. Rate was pretty bad, too. Like it matters to me. I made a paper airplane out of it and tossed it around for a while. No seriously, I did. Flying credit! WAHOOOO!

[Humanoid]

This will mostly have a psychological effect and shouldn't effect consumption much. There is currently around 4.5 trillion in available credit and around 900 billion of that is used up. So calling available credit by $2 trillion leaves at least another $1 trillion which won't be used up anytime soon.

Although, it does depend what limits they are cutting. Closing cards and cutting limits on people that hardly use their cards won't effect consumption, but if you start cutting limits on people that are heavily consuming on credit cards it could. They seem to be doing the former though...

[evilnewbie]

As far as I remember... Amex and Discover have always used that tactic "up to" % back "after" you spend so and so... that means the first 6000 is only 1%, the next several k are at 5%... I do spend that much each year but not by much... so it averages a lot lower than 5%... I prefer my card that gives a straight 1.25% cash back immediately each month (higher percent cashback for gas/grocery)... as t0 the 2 Trillion loss in credit... well I lost 150k in credit lines recently... still have more than I need right now...

[Barkingowl]

Amex just closed all its business lines of credit. Apparently because they are now a bank they will be making loans.

[CouponJack]

Originally Posted by 70Ford

Credit-card users may find limits slashed just as they need money - MarketWatch

Whitney, an analyst and managing director at Oppenheimer & Co. who predicted the current financial-services industry meltdown, now says credit-card issuers will eliminate more than $2 trillion in available credit over the next 18 months.

************************
Hrmmm. That's interesting. $2,000,000,000,000.00 is a big number.

I just got an offer from American Express again, today. Their cashback card sucks. Wanna know why? Purchases from super stores aren't counted. Gotta spend $6,000+ a year to get 5 percent cash back. I probably put about $12-15K on mine per year, but pay it off monthly. Actually, I pay it off the same or next day. Rate was pretty bad, too. Like it matters to me. I made a paper airplane out of it and tossed it around for a while. No seriously, I did. Flying credit! WAHOOOO!

I like the AMEX blue card. I have yet to find a rebate card that's better.

I don't have any problems putting 6K/year on a card. Been paying it off on time for the past 2 years and received 600-700 each yr. just for using it...

[evilnewbie]

Originally Posted by Barkingowl

Amex just closed all its business lines of credit. Apparently because they are now a bank they will be making loans.

That should be good, when a bank first opens, it has to lure in customers and build a name for itself... I am thinking they are going to have good rates and good terms... their credit cards suck anyways, I don't spend enough to make it worthwhile and neither does the general public...

[70Ford]

I still prefer my Chase Amazon card. 2500 points for 2500 spent (25 dollar off coupon) or 3 X dollars spent at Amazon.com. 833.333333333 et al. X 3 for things bought there. I buy a lot from Amazon.