4 ms·
It's also the fun part about credit. When you don't need it, it is real easy to get. When you need it, it is real hard to get. This is why $1 in the bank is
by brianwawok 7y ago
It's also the fun part about credit.
When you don't need it, it is real easy to get.
When you need it, it is real hard to get.
This is why $1 in the bank is worth so much more than $1 in credit that you can maybe draw on. Especially lines of credit that can be called in.
- perlpimp 7y agoI wonder how much bank needs to be hurting to call in a loan / call in your mortgage to try to sell it for a fraction of a price in some unknown distant future.
- joeax 7y agoTwo years ago someone I know was laid off. After a three-month climb to find a new job, they vowed to put together an emergency fund. After a sudden drop in rates, they took out a small cash-out refinance. Luckily they still have a job, but the fact that they now have that cushion puts their mind at ease. Lesson learned: take advantage of cheap credit while you can.
- duxup 7y agoThat seems like more of a roll of the dice.... If they're capable of paying back that refinance ... probably could have just saved. I suppose there is a little window of time where it is advantageous if they're laid off again, that seems more like random chance.
- deleted 7y ago[deleted]
- silverreads 7y agoThey got cash while it was easy and certain. Accumulating it slowly would be as uncertain as their employment and expenses, and the option of borrowing later when they really need it may not be available. I can see how it might have been a logical choice for them.
- deleted 7y ago[deleted]
- WillPostForFood 7y agoThe page doesn't say that they are calling in lines of credit, just that they aren't issuing new lines of credit
- deleted 7y ago[deleted]
- brianwawok 7y agoIn 2008 everyone called in lines. This is the first step. I had some credit cards go from 50k credit line to 5k. My credit was unchanged. They just didn't want 45k of empty credit on their books.
- perl4ever 7y agoA credit card is not a heloc, so is your opinion based on anything else?
- TAForObvReasons 7y ago"A banker is a man who lends you an umbrella when the weather is good and takes it back when it rains."
- perl4ever 7y agoWhat's your point, that it's futile to try to get a heloc this spring? Do you have evidence that it's conceivable to "call in" such a line of credit? Because I'm not familiar with an agreement that says so or an account of it happening in the past.