Will Credit Pinch Affect Credit Cards?

This is a good question, and in fact, even credit card lender companies have been tightening their credit limits and who they give credit cards to in the first place for a while now. In the past few years many of my friends have made the observation that they no longer get the free for all credit card offers that they used to just a few years back.

Some credit card lenders have really taken to increasing the APR on credit cards that are extended to people who either have late payments a few times or who are a poor credit risk to begin with under the guidelines they have established for their lending practices.

With the new credit crunch, which has mostly to do with lending for new homes and mortgages, it may very well extend into the credit card market as well, so this is another reason that we have to add for a decreasing GDP (Gross Domestic Product), which just means that people have less loaned money to spend and to put back into the economy, creating a more severe and deeper recession.

The bottom line is that if you are looking for a good balance transfer credit card to put higher interest debt on, you might want to jump on a card offer that you get that works for you while you still can. There is no telling how far down the credit crisis is going to delve, and it’s not such a far fetched idea that credit card companies may pass this pinch down to their customers with more credit limit restrictions, penalties for late payments, and increases in the interest rates we are charged, so it’s better to get in while you can if you’re getting good offers.