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Shouldn't credit card issuers re-verify qualifications every few years?
I've had a particular credit card since 1991. I have 3 that, combined, have limits that far exceed my annual income. Probably by double. The balances are zero, but the potential is there for ruin.
Should banks monitor how much credit they are giving out to people related to their income? Shouldn't they check household income every few years to make sure there still IS one to limit their exposure? Is it irresponsible lending to just pass out limit increases over the years and all they are really watching is a FICO now and then?
6 Answers
- YumanLv 41 decade agoFavorite Answer
No. The behavior history of a card holder is more reliable as an indicator than an artificial qualification check. If you have, since 1991, been responsible as a borrower, the risk of lending to you is low.
- 1 decade ago
No, thats not what they are in business for. It is YOUR responsibility to be responsible with your credit. If you over charge more than you can afford the interest adds up and they will get it one way. Of course you could file bankruptcy but they dont have to forgive you and include it if they dont want to.
Thats just like saying if you buy a home they should reevaluate your income every few years. If you qualify on one income and the changes to where you cant afford, thats your fault. You should have thought about that possibility before buying the house.
People need to stop putting on the blame on the banks and stuff and blame yourselfs at some point.
Source(s): If people dont have financial common sense then they shouldnt be taking out credit!!!! That is a big reason why everything is the way it is. we need to be responsible for ourselves and not rely on someone else. - Anonymous1 decade ago
That's ridiculous, why on earth would they want to do that? They issued the card to the applicant based on their current ability to qualify, anyone's circumstances can change with ease. Suppose you're 25 when you get a $10,000 but you are an A-1 client who always pays in full and/or rarely uses their card.
Year go by and you go on maternity leave (females of course) so you're no longer employed...but you still manage your card well.
Fast forward to retirement years, again you're on pension/retirement income. So what do you think card companies would do?
Credit companies are in the business of lending money at cost, not playing big brother. If you don't pay, they know where to find you!
But if you're really, really keen go ahead and start up a company and check all your clients every 2 years....have fun!
- CheyenneLv 61 decade ago
Do you have ANY idea how long that would take to check? Frankly they are hoping that people default so they can rack up the interest and late fees.
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- BTB '09Lv 41 decade ago
I personally think that is a great idea and would be a big help to people who don't have any financial common sense. However, I also think it will never happen
