Us Credit Card Holders

[Jingthing]

Full details about this at washingtonpost.com:

Having Less Purchasing Power

The credit card companies are getting hard core:

-- lowering credit limits

-- canceling inactive cards

-- reacting strongly to one late payment

-- lowering credit limits/massively raising interest rate for people with zip codes in high foreclosure areas and also (!!!) people who shop at the "wrong" strores

-- looking at a lot more than payment history very "1984", I imagine many expats with cards who maintain US addresses are looking strange indeed to these snooping computers

This is expat relevant as many of us living here maintain US cards. Happy recession!

Edited November 16, 2008 by Jingthing

[VegasVic]

Full details about this at washingtonpost.com:

Having Less Purchasing Power

The credit card companies are getting hard core:

-- lowering credit limits

-- canceling inactive cards

-- reacting strongly to one late payment

-- lowering credit limits/massively raising interest rate for people with zip codes in high foreclosure areas and also (!!!) people who shop at the "wrong" strores

-- looking at a lot more than payment history very "1984", I imagine many expats with cards who maintain US addresses are looking strange indeed to these snooping computers

This is expat relevant as many of us living here maintain US cards. Happy recession!

Jing, This is definately the next big crisis As revolving credit facilities become more stringent less available and U.S. consumers "hunker down" there will be massive repercussions in the countries that supply the U.S. with goods, China in particular will have an severely escalating rise in unemployment that will in turn cause the need for further internal stimulus programs. This will have a death spiral look to it across the world as the U.S. consumer curtails their spending habits!

[Gary A]

I deal with Citibank USA. I have a checking and savings account. I also had a Mastercard through them. When the Mastercard expired, they refused to issue a replacement. I was informed that they do not issue credit cards to anyone who does not reside in the US even though I had that card for years. Fortunately I also have Visa card through Bank of America. They have no problems with me holding their Platinum Visa.

[Jingthing]

I deal with Citibank USA. I have a checking and savings account. I also had a Mastercard through them. When the Mastercard expired, they refused to issue a replacement. I was informed that they do not issue credit cards to anyone who does not reside in the US even though I had that card for years. Fortunately I also have Visa card through Bank of America. They have no problems with me holding their Platinum Visa.

That is very common, not dealing with non-US addresses. That is one of the big reasons I use a US address of a friend for all of my US financial institution correspondence. I just posted the news as a heads up for people so that they realize that the companies are looking for ways these days to, raise your rates, lower your limit, and cancel your card. It probably isn't news that if you mess up on one card (one late payment) ALL your cards know about it, and generally all take negative action. I don't know if they all would take action if one card didn't like that you were shopping at Walmart (a foreclosure risk indicator). They don't share all their inside secrets but they can do pretty much anything they please.

Edited November 17, 2008 by Jingthing

[teacup]

Well it's also depending on your credit score also....ME THINK

Mine is 810, so I still have plenty offers from the credit card companies, and many of them at 1.99% for the balance transfer until paid off.

.....still haven't seen any reduction in my credit limit, as yet....esp with my CITI card

[Jingthing]

Well it's also depending on your credit score also....ME THINK

Mine is 810, so I still have plenty offers from the credit card companies, and many of them at 1.99% for the balance transfer until paid off.

.....still haven't seen any reduction in my credit limit, as yet....esp with my CITI card

You thinks WRONG. If you have one late payment, all your cards rates will go WAY up. Try it and see.

Edited November 17, 2008 by Jingthing

[teacup]

Well it's also depending on your credit score also....ME THINK

Mine is 810, so I still have plenty offers from the credit card companies, and many of them at 1.99% for the balance transfer until paid off.

.....still haven't seen any reduction in my credit limit, as yet....esp with my CITI card

You thinks WRONG. If you have one late payment, all your cards rates will go WAY up. Try it and see.

nope.....most will allow up to 2 late payments ja, call them if U don't believe me

And if you're very responsible...of how you use the cards and making the payments, then nothing to worry much here---don't u think so?

[Jingthing]

Well it's also depending on your credit score also....ME THINK

Mine is 810, so I still have plenty offers from the credit card companies, and many of them at 1.99% for the balance transfer until paid off.

.....still haven't seen any reduction in my credit limit, as yet....esp with my CITI card

You thinks WRONG. If you have one late payment, all your cards rates will go WAY up. Try it and see.

nope.....most will allow up to 2 late payments ja, call them if U don't believe me

And if you're very responsible...of how you use the cards and making the payments, then nothing to worry much here---don't u think so?

OK, in your case the 3rd late payment. Read the link (you would have to google to it and subscribe to the website). The point is that they know that there is massive unemployment and foreclosures going on now and that they are now looking at a lot more that timely payments. It is real. Just because maybe it doesn't effect you, doesn't mean it doesn't effect millions of other consumers. I didn't make this up. There is a REAL change in policies. Just a heads up.

Edited November 17, 2008 by Jingthing

[teacup]

Okok I believe you and those links have some valid points also, for real

Just trying to give some inputs to the thread from my real life experiences angle here, coz it's just so boring elsewhere

[Jingthing]

Okok I believe you and those links have some valid points also, for real

Just trying to give some inputs to the thread from my real life experiences angle here, coz it's just so boring elsewhere

Here is the link. Not sure if people will have to register or not to view:

http://www.washingtonpost.com/wp-dyn/conte...8111500216.html

[teacup]

ok somewhat off topic here,

How much is the current rate on yours then.....JT?

[Jingthing]

ok somewhat off topic here,

How much is the current rate on yours then.....JT?

I have a normal market rate, I frankly don't even look at it. I never carry a balance (unless on a zero interest deal) so I what is known as a DEADBEAT to the card companies. I like to have the cards for convenience and in case a major expense comes up.

[dingdongrb]

I hold and American Express card. Got it when I lived in the USA. They currently have my LOS address (CM) on file as I notified them when I moved over here over 2 years ago. They had no problem with that. In the past year they have increased my credit limit over $8k without making a request. Likewise they have lowered my interest rate for purchases (not cash advances, no problem since I don't use this service) without me requesting them to do so.

I guess this is what happens when you use your card to purchase k's of $$$ and pay off your balance each and every month.....

[vagabond48]

I have been in Thailand for 2 years and haven't used my CC yet, but I plan to do long distance traveling outside of Thailand so I'll be flying. Recently I contacted Citibank to change my address so my backup CC would be mailed here. They told me that my card was canceled due to inactivity and that this was irreversible. I made a very small stick and told them "mai pen rai khrap". Next day, I went online and applied for a CC at one of my brokerage firms, no big deal. Last week, I got a letter from Citibank saying they were reviewing "my request". What request, they told me my CC was canceled? Today I got another letter from Citibank with my renewed CC, good for another 2 years of backup. Maybe my credit score is high. I never bothered to request one since it's not free.

[Phil Conners]

Well it's also depending on your credit score also....ME THINK

Mine is 810, so I still have plenty offers from the credit card companies, and many of them at 1.99% for the balance transfer until paid off.

.....still haven't seen any reduction in my credit limit, as yet....esp with my CITI card

Where can you look up your credit score?

[rijb]

ok somewhat off topic here,

How much is the current rate on yours then.....JT?

I have a normal market rate, I frankly don't even look at it. I never carry a balance (unless on a zero interest deal) so I what is known as a DEADBEAT to the card companies. I like to have the cards for convenience and in case a major expense comes up.

I worked for Citi Credit Cards USA for about 3 years. I left last year. You're not considered a deadbeat as long as there is activity on the card. Credit card companies get a nice commission on all your purchases. However, you would be considered a "gamer" if you constantly switch cards to get a lower interest rate.

Your previous post is correct. Credit card companies will raise all your rates for late payments. Sometimes they will give preferred customers a little slack. But, I wouldn't chance it in this financial shit storm. They have real time data from all the credit agencies. You can run - but you can't hide...

[jfchandler]

A couple of thoughts here.... and thanks to Jing for posting this subject...

1. I'd never tell a U.S. credit card co. I'm living in Thailand, and I maintain a U.S. mailing address for that very purpose. Yes, it's possible that it might not matter for this or that individual card company. But as some posters above have mentioned, it's taking the risk of getting canceled or non-renewed particularly in the current environment. And, if you don't have to take that risk, why take it? Keep your U.S. address of record and don't invite hassles you don't need.

2. Despite the prevailing bad credit environment, as someone mentioned above, I too had an unsolicited balance increase lately from BofA on one of my cards with them. I rarely use the card, but I did put a largish balance on it one month and then paid it off a month or two later. A couple months after that with no further use of that card, my credit limit increase notification arrived in the mail. Still not using their card.

3. I have accumulated over the years, and now still keep, more credit cards than I ever use with a variety of card providers. In fact, I rarely use any at all, except for travel expenses when going back to, or staying in, the old USA. But I still keep the multiple cards with different card companies for a couple of reasons.

--a: It's good for your credit worthiness/credit score. A big factor in that is the amount of your available total credit compared to how much of that you have outstanding (revolving debt). The higher your available credit and the lower your used debt, the better off for your credit score. That's one reason financial experts always advise to never cancel existing credit cards, even if you're not much using them. Just keep them in the drawer, and let your available credit work to your advantage.

--b: the other reason to keep credit cards is flexibility, particularly if the credit tightening mentioned above starts getting very serious even for those with good credit histories. So if I have 6-8 credit cards, all in good standing, and if for some (usually bank-specific) reason one or two of them get canceled, I still have many left available to use. But certainly, you don't want to only have one or two available to you, and then happen to have that bank or two come along and cancel you... Then it's a big headache.

[Gary A]

Citibank didn't refuse to issue a replacement card because of my credit history. I have not owed anyone a dime for over five years. I would guess that I was considered a less than desirable customer because I seldom used the card and when I did, I paid the total balance before it was due. I was surprised that they refused to renew my card because I have several automatic deposits at Citibank and they are my only bank. Do I feel any loyalty to Citibank? Just the opposite. I would change banks in a heartbeat if it were not so complicated and I could find a decent bank. Believe me, I have tried.

[henryalleman]

Luckily I'm very conservative with using credit and shopping cards. But I'm afraid that due the overspending the limits and the economic recession there is the possibility that theirs an credit card crisis in the near future who will be a tenfold of the housing crisis.

Last night I saw a documentary of a female teacher in the US with 4 kids who lost her job due illness, the result was that she lost her house, and her credit cards where cancelled. She said she lost everything and will be homeless after the bank give her notice of an eviction . I think millions of US households are in this position now. We aint seen nothing yet.

[Jingthing]

It is projected that soon 1 in 3, yes 1/3 of all US homes for sale will be in foreclosure. This is going to take years to shake out of. It really is the most severe economic situation almost all of us have ever seen (exception for the oldies who loved through the great depression).

[jfchandler]

Jing, one third of all houses FOR SALE in a given time (such as now) being foreclosures is a different thing, of course, from one third of all houses being foreclosed on or facing foreclosure. I think the current percentage of such sales in the L.A. or So. Cal. area is even a higher share lately.

Many people who are NOT facing foreclosure, of course, are not likely to be putting their homes on the market now, because the prices have become so depressed. So they're waiting for a better time to look to sell, unless they really have to now. Thus, the people who HAVE to sell now, at the worst time, are those in trouble. Thus foreclosures are amounting, at present, to a large portion of all current listings or actual sales (again, because the lowest prices are likely to attract buyers more quickly).

I think that, like other bubbles of late, is likely to work its way thru the real estate market in the coming months. If I still had a home ownership in the U.S., I'd certainly not be looking to sell now at or near the bottom of the market, but instead hoping for things to come back at least somewhat to minimize my loss or maximize my gain. Fortunately, in my case, I got out while the getting was good... Wheeeewww......

[Jingthing]

Many people who are NOT facing foreclosure, of course, are not likely to be putting their homes on the market now,

Thats a very good point. Sadly I have a good friend who has to sell now (not a foreclosure). It isn't pretty.

[midas]

I think that, like other bubbles of late, is likely to work its way thru the real estate market in the coming months. If I still had a home ownership in the U.S., I'd certainly not be looking to sell now at or near the bottom of the market, but instead hoping for things to come back at least somewhat to minimize my loss or maximize my gain. Fortunately, in my case, I got out while the getting was good... Wheeeewww......

What utter rubbish !! how can say that so confidently ? Where are your statitistics

to support this ?

" like other bubbles of late " its not like anything " of late " NO ONE

knows what is going to happen and how long it will take and talk about

months as a timeline with all the job losses mounting up everywhere

is bullshit- keep taking the tablets

[Naam]

It is projected that soon 1 in 3, yes 1/3 of all US homes for sale will be in foreclosure. This is going to take years to shake out of. It really is the most severe economic situation almost all of us have ever seen (exception for the oldies who loved through the great depression).

Jingthing, the rubbish you just posted moved you on top of the list of those for whom i will issue a certificate stating:

"This is to certify that the holder of this certificate has no fàcking idea as far as economics are concerned, however it is certified too that he possesses a wealth of that "no fàcking idea".

signed:

Naam

[CaptHaddock]

I think that, like other bubbles of late, is likely to work its way thru the real estate market in the coming months.

I am continually reading forecasts of a bottom in the US housing bust coming in a few months or late next year. I think that people just can't grasp the scope of this problem, which is hardly surprising since there has never been such an economic event in US history before. The nearest example is the Japanese housing bubble. Houses in Japan peaked around 1989 and are now down 65% to 75% from the peak values. Those peak values will never return. Because Japan went through credit, equities. and housing bubbles that burst, just as the US now has, Japan is the best available, though an imperfect, indicator of what to expect here in the US.

Therefore, I expect US housing to bottom out in the period 2012 to 2020. Houses will never regain their peaks of 2005/2006. Those homeowners who wish to sell, but are unwilling to accept the current market value will be holding a house worth much less five years from now.

[Naam]

Well it's also depending on your credit score also....ME THINK

Mine is 810, so I still have plenty offers from the credit card companies, and many of them at 1.99% for the balance transfer until paid off.

.....still haven't seen any reduction in my credit limit, as yet....esp with my CITI card

my last fàco score in 2004 was 812. but i couldn't care less what my/our score is as i haven't used any of my platinum/palladium/quantum or what have you U.S. credit cards after i left the greatest Nation on Earth™. credit score for me has as much value and relevance as last week's weather forecast for the Pattaya/Sattahip/Rayong area or the price Jingthing pays for a mafia taxi from Jomtien to Boys Town. my wife and me hold each as main cards to use a Master/Visa card double issued by our bank where we keep our portfolio. there is no stated limit. i am however sure i can buy a Ferrari with any of the cards but might have problems acquiring a Learjet or a 285' yacht

[think_too_mut]

I think millions of US households are in this position now. We aint seen nothing yet.

Can't remember what that way of lending is called where the borrower pays "discounted" interest rate for first 2 or 3 years while the remainder is accumulated and added to principal that grows, in spite of monthly repayments (it's illegal in Australia).

After that "grace" period, full rate payments on the swallen principal kick in. That period is still "enjoyed" by many who borrowed that way....that's where "we aint seen nothing yet" probably comes from. The bombs start detonating approx. Q3 2009.

[dingdongrb]

i am however sure i can buy a Ferrari with any of the cards

Talk about utter BS..... Hmmmmmmm (Still laughing...... of course unless it's one of those cast iron models)

:D

[jfchandler]

Sorry Jing, I'm NOT confident about anything when it comes to real estate in the U.S., and I didn't say I was...

But, there are a variety of things happening.. the U.S. govt is heading toward/considering some kind of foreclosure relief measure, the initial wave of subprime loan-related foreclosures is already in the system and frankly, with all the trouble banks are having, they're not really anxious right now to be taking on all kinds of additional distressed/foreclosed properties to add to their balance sheets.

So, my guess is, even if the economy continues to worsen, which it probably will for some time, I repeat, my guess is, the worst/largest collection of the foreclosures are already in the pipeline and getting handled one way or the other.

Does that mean that I think or said housing prices are going to rebound next year... NO... I didn't say that at all... just that the volume of foreclosures probably has already reached its peak..

About values, my first owned house in the U.S. was purchased just before the real estate crash of 1989, which was a pretty big one in Southern California. It was a great house and we enjoyed living there for almost 10 years. It was our home, not so much an investment. But nonetheless when we finally had to move a decade later, the house's market value was HALF of what we had paid originally...and that was TEN years later.

However, up until last year, the value of that same house, then 15-17 years after our original purchase, was probably double what we had paid back in 1989... Today, it's probably back to about what we paid back then. Unfortunately, we finally HAD to move after 10 years. It would have been great if we could have held on another 5-7 years more. But life didn't happen that way.

[dingdongrb]

Sorry Jing, I'm NOT confident about anything when it comes to real estate in the U.S., and I didn't say I was...

But, there are a variety of things happening.. the U.S. govt is heading toward/considering some kind of foreclosure relief measure, the initial wave of subprime loan-related foreclosures is already in the system and frankly, with all the trouble banks are having, they're not really anxious right now to be taking on all kinds of additional distressed/foreclosed properties to add to their balance sheets.

So, my guess is, even if the economy continues to worsen, which it probably will for some time, I repeat, my guess is, the worst/largest collection of the foreclosures are already in the pipeline and getting handled one way or the other.

Does that mean that I think or said housing prices are going to rebound next year... NO... I didn't say that at all... just that the volume of foreclosures probably has already reached its peak..

About values, my first owned house in the U.S. was purchased just before the real estate crash of 1989, which was a pretty big one in Southern California. It was a great house and we enjoyed living there for almost 10 years. It was our home, not so much an investment. But nonetheless when we finally had to move a decade later, the house's market value was HALF of what we had paid originally...and that was TEN years later.

However, up until last year, the value of that same house, then 15-17 years after our original purchase, was probably double what we had paid back in 1989... Today, it's probably back to about what we paid back then. Unfortunately, we finally HAD to move after 10 years. It would have been great if we could have held on another 5-7 years more. But life didn't happen that way.

I guess, thankfully, I can't say the same for the house I currently own in the USA. (Bought back in 1990) CA homes, like Las Wages and other areas are (and have always been) the most fluctuating areas in the USA. Great when the market is in an 'up tick' but can go down very fast as well.

Three words when it comes to real estate (but I am sure you know that):

Location Location Location