One year ago in December 2009, there were approximately 70 million open credit cards in America. That number today is down by 8 million. Are American consumers finally getting smarter about credit card debt, or did 8 million people eliminate themselves from qualifying for credit due to poor credit scores as a result of a receding economy?
To my suprise, a Chicago based research firm hired by Transunion found that a significant portion of the reduction in credit card users is a voluntary decsion by the cardholder to stop using credit. Transunion reports that many of these people are choosing to use their debit card and spend only money that they physically have versus charging their credit card.
There is a bit of good news regarding the 62 million current card holders. Unlike mortgages, credit card delinquencies are still in a “normal” range. Qualifying for a credit card is still fairly easy, however the credit limits may be much more conservative than you may expect. It is important to note that even if you have a flawless credit score, credit card companies are lowering limits, and that random, unauthorized act can have a big impact on your current credit score.
I would be happy to go over your credit report with you and give you a FREE credit analysis were I can show you how the Rules of Credit have changed, as well, to show you how to prevent the possiblilty of identity fraud and itentity theft. Another great place to start if you are interested in getting your hands wrapped around debt, and creating a sound financial plan is to attend a Dan Keller 12-week Financial Peace Courses that I teach (FREE) through Dave Ramsey’s Financial Peace University.
Click here –> To see how I explain credit and the New Rules of Credit
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