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Easy Credit & Real Estate

Easy Credit

One card issuer more than tripled her spending limit, to $17,000. Another increased her limit 60%, to $16,500. Lewis-Parks' income hadn't risen. Nor had her credit score changed much. "The only thing that went up," she says, "was the equity in the house."
Ref. https://www.usatoday.com/money/perfi/credit...card-trap_N.htm

Estate Real and Credit Easy

The more equity you have in your home the more your credit can increase. Many banks and other lending institutions will give you credit if it is based on your homes value and the amount of equity you have in it. I think consumers should be careful on getting credit that is tied to their equity.

Easy Credit & Real Estate History & Civil Business Politics

Many consumers suddenly find credit card debt limits slashed

The easy money that led Americans to depend on credit cards to pay their bills is starting to dry up. After fostering the explosive growth of consumer debt in recent years, financial companies are reducing the credit limits on cards held by millions of Americans, often without warning.
Ref. https://www.signonsandiego.com/uniontrib/20...1b21credit.html

Estate Real and Credit Easy

This is a nother way for the credit lenders to take your house from you. If you have unlimited credit and you end up spending a storm on things and cannot pay it back, then guess what they are going to be looking for, yeah, your castle! If you own your own home and I mean really own it as in debt free, no mortgage or lean or anything then you should not need credit cards because you will have more cash at your disposal.

Estate Real and Credit Easy

If they increase your credit limit as your equity grows doesn't one kind of negate the other? At least if you use that credit. If you can show restraint and not use the additional credit it could be okay. But most people seem to think that if they have the credit limit they have to use it. If your home equity increases by $17,000 and so they increase your line of credit by $17k, if you limit out on the card your it is as if you have no equity. Another reason why it is a good idea to keep your credit cards at zero balance if at all possible.

Easy Credit & Real Estate

That is good advice but with the housing market as it is now what about those who had a credit limit of lets say 15K because they have 15K in equity. They had a 10K balance on their card. Their house value drops and they no longer have an Equity. Now they are stuck with another 10K of debt.

This is one of the big reasons why you should not tie a credit card in with your homes equity.