Downgrading the American Consumer's Credit Rating ~ market folly
Wednesday, March 25, 2009  Downgrading the American Consumer's
Credit Rating  Downgrading the American Consumer's Credit
Rating: A Potential FICO Score Nightmare by market folly  We're
here to point out a potential unforeseen consequence of credit
cards as the next credit crunch. The developments of credit card
companies raising interest rates, cutting credit lines, and
closing inactive accounts altogether has many consequences:
Firstly, consumer confidence and consumer spending could drop
off. Secondly, as such, the economy as a whole would continue to
suffer. Lastly, and most unforeseen, FICO (credit) scores most
likely will be reduced and many American consumers will
essentially be 'downgraded' by way of their new, lower credit
scores, further inhibiting their access to future credit. Many
people are focused on how these actions will affect consumer
spending (and this could be a legitimate concern). But, we also
want to turn the focus to the