Credit Gets Crunched

Bizarre. Why would anyone want this information? Especially in a census year? Not to mention the fact that we are still facing the largest financial assbeating since whatever came before the Great Depression.

In all seriousness, they weren't already considering your income and assets?! It all makes sense now.


Think your income is private information? Think again.

Credit-card companies and banks will be gathering more data on us, thanks to new Federal Reserve rules that require companies to consider your income or assets and debt outstanding when determining whether you get a new credit card.

Companies already are asking for more detailed information in their online applications. Capital One is asking applicants to disclose how much they pay in mortgage or rent payments, how much they have in bank accounts and how much is in their investment accounts. Bank of America and J.P. Morgan Chase are requiring household-income estimates.

In the past, companies relied on self-reported income information. But lenders already are starting to use new products from credit-reporting companies to double-check the income figures we provide on credit applications.

Experian estimates annual income to the nearest thousand, while TransUnion offers a range. But both credit-reporting firms acknowledge the estimates are just that. Chet Wiermanski, global chief scientist at TransUnion, says its estimates can be off by $15,000 or $20,000.

Because the bureaus' numbers aren't exact, the companies say their contracts prohibit lenders from turning down customers based solely on the information. Lenders may, however, ask you for more details, like pay stubs or tax returns, before approving your card application.

So it's not necessary, they're just taking it. On the one hand, isn't it sort of a good idea for potential lenders to get verified income? But on the other, check my Facebook status if you're that fucking nosy, Chase.

And in case that isn't enough, there's always the ongoing credit crunch, which we may partially attribute to Obama's genius credit card "reform" act.

The new normal for credit cards may be more transparency and easier-to-understand terms, but at a higher upfront cost. Credit card issuers and credit industry analysts say the credit card reform law will make credit cards more costly for all users and unaccessible for low-income families and people with bad credit. Look for the return of routine annual fees, fewer rewards cards and the possibility that credit card bills will be payable immediately rather than after a month-long grace period.

President Obama signed the Credit CARD Act of 2009 into law May 22, 2009, following passage days earlier in the Senate and the House. (Read the act.)

I'm torn. People don't deserve credit obviously as they abused the last batch they got. Then again, the banks are hoarding all this extra cash at ZIRP and stuffing it into Treasurys, not credit-worthy accounts.

Lame. Fucking money laundering, what do you expect?

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Anonymous said...

Easy credit - be careful what you wish for because you might just get it. A Bill Bonner quote that I just love is "Markets don't give us what we expect but they do give us what we deserve - sometimes good and hard." Is that a scream or what? That includes credit markets.