Do you think the credit companies will have to drop their standards in the future? ?

[KamishaJ]

With so many houses in forclosure and people losing their jobs and not being able to pay their bills, there will be more people with bad credit than with good credit. I know forclosure looks bad on your credit and also not paying your bills. What do you think?

 

[SarahC]

Don't know if this is relevant, but I just got a letter from my credit card company telling me they are upping the interest rate because of "the economic environment." Why should I have to pay for that?
People are going to stop making payments and file bankruptcy. It doesn't solve their problems. They lose money anyway.

 

[Paul]

Actually with all the losses the banks are facing with the foreclosure mess they will lose a lot of money. At the same time people in foreclosure usually default on their credit cards. That means they will need to tighten credit to make sure they do not lose any more money in their credit card business. The government has also stepped in with new restriction on credit card companies that should lower the number of people who are eligible for credit card and lower the card credit limits for everyone. So in total I expect card companies to raise standards for at least the next couple of years.