New Age of churn and Mfg spend?
#31
Join Date: Oct 2009
Location: Land of the parrots and parrotheads
Programs: Several dozen
Posts: 4,820
Not a scare, just A+B=C as we learn where some of the mines are placed in the credit minefield. Some of us who run volume tend to find the mines before the rest of the pack and also be on the other boards where this game is played on a grander scale. FR of course is just a nuisance, but I tend to avoid triggering it as it slows monthly intake by locking up 4 cards for about 2 weeks at a financial opportunity cost of about $160.
The real killer in the credit game is sudden increases in velocity as when some decide to goldrush an opportunity fearing its sudden death. A quick, large uptake in credit consumption mimics a well-known risk scenario whereby someone in financial trouble runs up all their credit and then walks off. As such, a response to seeing this pattern may have coded into the card issuers automated internal controls.
The real killer in the credit game is sudden increases in velocity as when some decide to goldrush an opportunity fearing its sudden death. A quick, large uptake in credit consumption mimics a well-known risk scenario whereby someone in financial trouble runs up all their credit and then walks off. As such, a response to seeing this pattern may have coded into the card issuers automated internal controls.
#33
Join Date: Jul 2012
Location: Pac NW
Posts: 154
The real killer in the credit game is sudden increases in velocity as when some decide to goldrush an opportunity fearing its sudden death. A quick, large uptake in credit consumption mimics a well-known risk scenario whereby someone in financial trouble runs up all their credit and then walks off. As such, a response to seeing this pattern may have coded into the card issuers automated internal controls.
and ramp it up gradually, as you said, it is the fear of sudden death that makes people disillusioned.
#34
Join Date: May 2012
Posts: 168