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Credit cards accounts being closed and limits slashed


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Credit cards are going to go right out of fashion as this lockdown has taught people that they need far less 'Made In China' rubbish to live a happy life.

One credit card with a small limit (say £1k) is useful for online purchases etc.  That's all most people need. 

The days of 'blow out' shopping trips on the credit card are over imo.

Edited by Social Justice League
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1 hour ago, Social Justice League said:

Credit cards are going to go right out of fashion as this lockdown has taught people that they need far less 'Made In China' rubbish to live a happy life.

One credit card with a small limit (say £1k) is useful for online purchases etc.  That's all most people need. 

The days of 'blow out' shopping trips on the credit card are over imo.

They keep sending me Credit Card offers, but then I owe nothing and have 999 on Experian.

Not so much Credit where Credit is due.

as Credit where it isn't wanted, and no credit where it is.

Edited by Mikhail Liebenstein
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17 minutes ago, winkie said:

Once not unknown for the total of credit limits of two or three credit cards being used as a deposit for a house......where else to get the money from?;)

I'm sure one or two bought the whole house on credit cards :D

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54 minutes ago, Mikhail Liebenstein said:

They keep sending me Credit Card offers, but then I owe nothing and have 999 on Experian.

Not so much Credit where Credit is due.

as Credit where it isn't wanted, and no credit where it is.

Same

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I’ll forever remain astonished just how much potentially highly dangerous high APR credit was available for those on modest incomes, at least in the past, from ‘reputable’ banks.

At one point I think I had 7 credit cards with a combined borrowing limit of circa 55k, potentially at 18% APR from a notional salary of sub 30k at the time. I was just doing it to surf the debt at 0% whilst earning decent interest on savings equalling the outstanding owed. But all the cards were active still after the introductory rate expired, so I definitely could have accessed that credit it if I was crazy. 

And I'm sure there are plenty of crazy people who did have much much credit and maxed them.

 

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3 minutes ago, Frugal Git said:

I’ll forever remain astonished just how much potentially highly dangerous high APR credit was available for those on modest incomes, at least in the past, from ‘reputable’ banks.

At one point I think I had 7 credit cards with a combined borrowing limit of circa 55k, potentially at 18% APR from a notional salary of sub 30k at the time. I was just doing it to surf the debt at 0% whilst earning decent interest on savings equalling the outstanding owed. But all the cards were active still after the introductory rate expired, so I definitely could have accessed that credit it if I was crazy. 

And I'm sure there are plenty of crazy people who did have much much credit and maxed them.

 

I currently still have a shed load of credit cards with zero balances on them which I could probably spend £80k on if I was heading towards bankruptcy..

The only reason I haven't got rid of them is that cancelling a card requires ringing someone up and spending 10 minutes on hold and it closing a card impacts my credit rating...

 

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1 hour ago, Mikhail Liebenstein said:

They keep sending me Credit Card offers, but then I owe nothing and have 999 on Experian.

Not so much Credit where Credit is due.

as Credit where it isn't wanted, and no credit where it is.

My Experian score always used to be 999 but these days it's lower. I take out a new energy contract and the credit check bounces me back to "fair". After a year it get's back to "excellent" and I change broadband supplier and it's back to "fair" again.  Actually, the Experian score is meaningless because it's not shared with potential suppliers, they just get CCJs , late payments etc., none of which I've ever had. Annoying to have anything less than a perfect score though. Amex just gave me one of their free cashback cards with a £4.5K limit "to get you started". My Visa limit has remained at £10K, for the last 35 years and I pay it in full each month by DD, but Experian have no details of it so the 30 year perfect record is not taken into account by them, hence my credit rating is based on credit checks for pocket money amounts. 

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My sister is in desperate straits on her credit cards and loans - £37,000 in debt. She can barely service them - and is having to borrow from me and my retired mother monthly.

She has a mortgage on her flat at a high SVR as she can't get a better deal despite having 40% equity. 

How she gets into this debt we never know - but she isn't alone in being unable to budget and live within her means as banks and credit card companies have lenr out and raised credit limits at will. We help her pay if off and she spends again.

I feel awful for her - she just can't stop spending and borrowing!

PS I have £26,000 in credit card limits - my current combined balance is £300 and will zero when I pay it off at the end of the month!

Edited by MARTINX9
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6 minutes ago, Frugal Git said:

I’ll forever remain astonished just how much potentially highly dangerous high APR credit was available for those on modest incomes, at least in the past, from ‘reputable’ banks.

At one point I think I had 7 credit cards with a combined borrowing limit of circa 55k, potentially at 18% APR from a notional salary of sub 30k at the time. I was just doing it to surf the debt at 0% whilst earning decent interest on savings equalling the outstanding owed. But all the cards were active still after the introductory rate expired, so I definitely could have accessed that credit it if I was crazy. 

And I'm sure there are plenty of crazy people who did have much much credit and maxed them.

 

Yeah, at one time I had a £15k limit on one card from a big high street bank.  I also had another 'few' cards. 

All paid off now, but back then I was in my 20's and I slightly overspent.......lol.  Young and stupid. :)

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58 minutes ago, Frugal Git said:

 I was just doing it to surf the debt at 0% whilst earning decent interest on savings equalling the outstanding owed.

 

I think that was called stoozing, or something. 

In the late 1990s it was rife. I used about £6k this way to build a £40k stock holding in the dotcom run up. 

Others went bigger and obtained BTL deposits on credit cards. 

Free money!  But not anymore. 

Isn't it strange how when interest rates were higher, credit cards were cheaper. 

 

Edited by Mikhail Liebenstein
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I got an offer to raise my credit limit on one card last week. Also got a new credit card (because I like 0% offers) last month.

I am self employed with a moderate income and  live in an affluent area of an affluent county and I was amazed that I have significantly higher than average credit scores for the area(with Experian and Equifax). What are people doing? Buying everything on credit?

Edited by gp_
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On 23/07/2020 at 14:34, MARTINX9 said:

My sister is in desperate straits on her credit cards and loans - £37,000 in debt. She can barely service them - and is having to borrow from me and my retired mother monthly.

She has a mortgage on her flat at a high SVR as she can't get a better deal despite having 40% equity. 

How she gets into this debt we never know - but she isn't alone in being unable to budget and live within her means as banks and credit card companies have lenr out and raised credit limits at will. We help her pay if off and she spends again.

I feel awful for her - she just can't stop spending and borrowing!

It sounds like she needs an Alvin Hall intervention.

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On 23/07/2020 at 14:33, Bruce Banner said:

My Experian score always used to be 999 but these days it's lower. I take out a new energy contract and the credit check bounces me back to "fair". After a year it get's back to "excellent" and I change broadband supplier and it's back to "fair" again.  Actually, the Experian score is meaningless because it's not shared with potential suppliers, they just get CCJs , late payments etc., none of which I've ever had. Annoying to have anything less than a perfect score though. Amex just gave me one of their free cashback cards with a £4.5K limit "to get you started". My Visa limit has remained at £10K, for the last 35 years and I pay it in full each month by DD, but Experian have no details of it so the 30 year perfect record is not taken into account by them, hence my credit rating is based on credit checks for pocket money amounts. 

So glad you shared that.  Mine used to be 999 too but over the last couple of years keeps dropping to fair and then slowly building for no obvious reason and I have big numbers moving around but have never missed a payment or defaulted on anything in my life.  Maybe you have solved that for me because I didn't want to pay Experian to find out when other credit sites still rated me highly.

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  • 415 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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