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Banks Are Handing Out Beefed-Up Credit Lines No One Asked For


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I'm inclined to ask, "Where's the beef?"  (someone want to insert an appropriate meme?)

 

Bloomberg articles tend to be pretty much "on the nose".  But this one is determined to weave a fictional tale of consumer victimization around a weak factual core.

 

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Interesting that most of the unrequested CLIs are aimed at the subprime customer base. But it makes sense. Those are the folks carrying balances and are where the bulk of CC income comes from. While the default rate has gone up a bit since the low 7 years or so back it's still quite low historically. So the banks are looking for the sweet spot where peeps are carrying 30 to 50% of their CL.

 

Pretty typical bank behavior in later stage boom cycles.

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54 minutes ago, hdporter said:

 

Oh!! ... they did this before??!  I'm gonna write an expose on this one ...   😜

lol!

 

BTW what happened to self control?  Am I the only millenial chasing 100k in available credit?  To be fair I did make my mistakes and generate $30k in CC debt, but I am now using a budget and keeping spending in control

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I have a hard time identifying with the folks who say that a CLI is a temptation.  When I was subprime, it was simply because of a monumentally unwise business decision on my part:  I used credit cards as a shock absorber for fluctuating business income.  When I got a CLI, I viewed it as having more insurance.  With that attitude, I would have gotten into trouble with or without a CLI.  There was no way a bank could know what was going on inside my head, and it wasn't their responsibility to do that anyway.

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