ICFE eNEWS #09-06 - March 16th, 2009
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Attention: ICFE Certified Credit Report Reviewers

Credit Cards Are the Next Credit Crunch

A November of 2008 ICFE eNEWS titled "Credit Card Holders Beware: Because Universal Default is Now in Stealth Mode" pointed out ways credit card issuers are aggressively look for ways to cut credit lines and account holders.

This retreat from new credit offers and expanding lines of credit is even affecting creditworthy consumers. Gone are the low-ball teaser rates and zero percentage rate balance transfer offers. Lenders have been tightening their standards for new account holders and to combat the still rising tide of negative accounts, managers are looking for ways to identify their present account holders ahead of time who might be headed for trouble and thereby lessen their losses. Some major card issuers are closing down inactive accounts and reducing lines of credit. Gone too are the generous rewards programs as more and more lenders cut corners to save money.

This link is to a Wall Street Journal article which has some good observations about the trend of cutting credit card limits and accounts -- which of course lower credit scores. It is a "must read" for ICFE CCRRs and interested others. View the article Credit Cards Are the Next Credit Crunch

About the ICFE:

About the ICFE:

The Institute of Consumer Financial Education (ICFE), founded in 1982 by the late Loren Dunton (creator of the “certified financial planner” (CFP) designation) and it is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. The ICFE trains and certifies Personal Finance Instructors for its own curriculum. It also trains and certifies Credit Report Reviewers and Identity Theft Prevention Specialists.

The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and resources. It publishes the Do-It-Yourself Credit File correction Guide, now in its 16th printing and has distributed over one million “Credit/Debit Card Warning Labels” and “Credit/Debit Card Sleeves” world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.

The ICFE is also a partner in the national Jump$tart Coalition for Financial Literacy and the California Jump$tart chapter. The ICFE staff is also active with San Diego Saves, an offshoot of America Saves, and the California Student Debt Resource Awareness Project (CASDRAP) (studentdebthelp.org).

The ICFE’s on-line help for consumers who spend too much was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from “The Money Instruction Book,” a course in personal finance, positioned to become among the premier programs in the new bankruptcy and debtor education initiatives.

The ICFE Web site at: http://www.icfe.info helps consumers with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and videos and how to teach children about money. Other ICFE services include a free eNewsletter, and an online resource center of financial education learning tools, including videos, books, software and personal finance courses.
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