Posted by michaela-CA on May 27, 2009 at 12:05:11:
You’re right. My mind had already skipped forward to ‘bad credit’, when you mentioned that credit doesn’t matter today. My bad
Michaela
Advanta Business Credit Card - Posted by Ricky
Posted by Ricky on May 26, 2009 at 17:07:49:
Just received a cancellation from advanta credit card, said they are closing all business accounts on 5/29/09. Has anyone else received this yet, I have been a customer for over 4 years and always pay the balance every month. Now I will find another bank to deal with, just a pain having to change.
Welcome to the anti Business Credit - Posted by Truth Teller
Posted by Truth Teller on May 26, 2009 at 21:07:27:
Legislative socialist movement.
Keep your credit lines full or watch them fall.
In One week I lost 2 LOC credit cards for my business issued by B of A… they consolidated me into one line with about 55% of what I had in total. BofA which is trimming back Lines now because of the new Legislation OUR well dressed President just signed according to my local Branch Manager.
He said to expect to see reductions in HELOCS as well very soon. And personal Credit cards as well
And one of my local Banks is now Requiring a Full Personal guarantee by “all” officers and principals on all their Lines of Credit and Credit cards for business and I just signed to let them pull my credit once a quarter on the personal side to judge there limits on my Business side.
I DO NOT CARRY BALANCES except on the BOFA LOC.
Looks like if you do not have your P&L and Balance sheet in order you will soon ONLY be able to go to the SBA to get a loan and I am not the right RACE to get that loan easily.
Has anyone else noticed they longer call it a minority owned business, but a Historically underutilized business? WTF
Things are getting very ugly very fast… Pull as much cash out as you can and do it SOON!
Looks like the credit card companies are all pulling back fast.
Chase consolidated our neighbors 4 cards into 2 with about 48% of the previous limits on someone who NEVER carries balances.
Re: Advanta Business Credit Card - Posted by Brian_Wa
Posted by Brian_Wa on May 26, 2009 at 17:23:25:
I got the letter and an email detailing the same thing yesterday…
Brian
FUQUA because there is just not another word - Posted by Mark Wompler
Posted by Mark Wompler on May 28, 2009 at 06:12:49:
Yep 3 for 3 lines of Credit fell to balances owed this week!
4 Credit card companies reduced limits or reduced by removing one card and combining into one line.
All in all we lost 65,000 of credit capacity and only carry balances on the Lines of Credit This week… Thank you Mr president
Its China - Posted by Chi Ming
Posted by Chi Ming on May 27, 2009 at 13:37:49:
When the Chinese government decided not to buy any more US debt, the amount of funds available to lend declined significantly. Much of the CC debt is held by China anyway. With their departure as a source of funds, that leaves Federal sources for additional lending capital. Banks have to get inside their ratios for potential obligations based on their own lines of credit. I do not know what the ratio is, but the bank’s credit lines have to be able to cover much of what they in turn offer in credit lines to others. There is just less money available.
PLUS, when Federal borrowing occurs, it takes money away from the larger pool of funds available to be borrowed as well.
catch 22 - Posted by michaela-CA
Posted by michaela-CA on May 27, 2009 at 06:28:13:
The problem is, if you fully utilize your credit lines that will drop your credit score like crazy. Seems that you’re daned, if you do and damed, if you don’t.
Michaela
Re: Advanta Business Credit Card - Posted by Lynn (FL)
Posted by Lynn (FL) on May 27, 2009 at 19:13:29:
Me too.
Re: FUQUA because there is just not another word - Posted by Denise
Posted by Denise on May 29, 2009 at 20:41:27:
That would be Mr Bush I presume.
It’s NOT China… - Posted by JT-IN
Posted by JT-IN on May 27, 2009 at 15:23:23:
“When the Chinese government decided not to buy any more US debt, the amount of funds available to lend declined significantly.”
Who said…? This is patently NOT true, as China is still buying US Treasuries in record amounts. At least according to Rueters on this past Monday.
Natalie, your Banker has it right… Credit lines, both drawn and undrawn, are contingent liabilities to the lender. What if one day every open CL was drawn to the max…? The bank better be able to cover that amount, ad they do with overnight borrowing from the FED discount window.
Was is happening to banks is the same thing that is happening to everyone today, asset values are dropping, and they have to cover their liabilities with assets… This is no different than having a margin acct in your brokerage acct… You have a debit balanace which is secured by the securiites that are margined against, but when those stocks drop in value then you either have to replace that evaporated value with cash or other securities… or they will sell the stocks that are purchased on margin to payoff the loan.
Banks are getting essentially margin calls by the OTS (Offc of Thrift Supv), which determines whether the bank is solvent and can continue to keep its door open as a bank with FDIC insurance. When the time come that the bank can no longer meet the capital requirements, they are taken over by the FDIC, so that they are no longer able to do damage to others under the guise of a Fed’l Chartered Bank. (like the 36 banks that have failed to date in 09); http://www.fdic.gov/bank/individual/failed/banklist.html
The Fed’l Gov’t borrowing does not always compete with the private sector for funds. The FED can print money, it can buy back its own Treasuries (which is what China wants the US to stop doing) or it can borrow in the open mkt. Many times when the Fed’l gov’t is deficit spending it can stimulate the economy to the point where there is NO negative effect in terms of competiton to private enterprise, so lets not call it a zero sum game… as if you and I were competing for the same dollar. BIG difference here.
good point - Posted by Natalie-VA
Posted by Natalie-VA on May 27, 2009 at 14:30:12:
The Banker for our commercial line of credit recently explained to me that regardless of how much I have out on our line, they have to account for the entire amount available to us.
–Natalie
so? - Posted by Greg¶
Posted by Greg¶ on May 27, 2009 at 10:41:39:
If even a good credit score can’t get you much credit, the value drops significantly. If I could borrow money cheaply now and put it in the bank, paying the price of a lowered credit score, vs. not being able to borrow in the future despite a good credit score, grabbing what you can now might be a good idea.
There’s no problem created by a bad credit score that can’t be solved with enough cash.
Re: catch 22 - Posted by Brian_Wa
Posted by Brian_Wa on May 27, 2009 at 06:57:15:
In this day and age, it’s hard to be able to do anything with your good credit if you’re an investor…
Re: FUQUA because there is just not another word - Posted by Eric in FL
Posted by Eric in FL on June 07, 2009 at 19:36:21:
I often blamed Jimmy Carter for everything as well. You will get over your moronic state of mind soon and realize what you have signed up for. Take a look at the beloved European way of life and how they voted in the last 24 hours. I thought they would never get it but eventually every stupid movie comes to an end.
Best Regards,
Eric
Actually NO - Posted by Mark Wompler
Posted by Mark Wompler on June 03, 2009 at 21:10:32:
Mr all you have left is CHANGE!
Re: FUQUA because there is just not another word - Posted by -Steve-
Posted by -Steve- on May 31, 2009 at 20:42:06:
…and Mr. Change
Re: It’s NOT China… - Posted by Gene
Posted by Gene on June 02, 2009 at 22:13:00:
“It’s never a good sign when you want to borrow money and your potential lender laughs in your face. But that’s exactly what happened to U.S. Treasury Secretary Tim Geithner on his recent trip to China.”
Good article:
http://www.ibdeditorials.com/IBDArticles.aspx?secid=1501&status=article&id=328834028106396&secure=1&show=1&rss=1
Re: It’s NOT China… - Posted by lukeNC
Posted by lukeNC on May 29, 2009 at 13:17:41:
“Who said…? This is patently NOT true, as China is still buying US Treasuries in record amounts. At least according to Rueters on this past Monday” – the US can only pay these back by printing more…"
This cant last…day of reckoning is coming soon.
You are in error - Posted by Chi Ming
Posted by Chi Ming on May 28, 2009 at 20:03:17:
Private debt, not government securities. And what you are saying is not what the Chinese language press is saying.
Re: so? - Posted by michaela-CA
Posted by michaela-CA on May 27, 2009 at 11:47:20:
Greg,
that’s a choice for everyone to make for themselves. Just wanted to point out that there’s a risk involved. Even if good credit doesn’t help a whole lot now, doesn’t mean that it won’t change in the next 7 years that it stays on the reports.
Michaela