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 How many times can a creditor sell an account to a collection agency?
On my credit report I've noticed that when a deliquent account is about to fall off as it is called another collection agency buys it.How many time or years can this go on?
Additional D...


 I got credit when i was 15 using my real social security number, do i have to pay off me bill?
When i was 15 i used my real social security number to get credit because capital one was sending me advertisments in what not for there card with my name. So I wrote back to them with my ...


 What kind of credit score do you need to get a good interest rate on an auto loan?
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 Can I use a prepaid credit card for buy something online?
I Checked on the website, and tried to call but they're closed does anyone know? Im using the company (Netspand)...


 I havent paid my credit card debts in 7 years can i apply for a new card?
...


 How the hell to pay a $17500 credit card debt?
I've really overspent my credit cards for the last two years. I've purchased nothing valuable, and to be honest I don't even know where the money went. I make $12 an hour and try to ...


 I have some blemishes on my credit report, how do I clear them? To improve my credit score?
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 Cashing check??
my friend got a check for a days work but the check written to her says shirley lee when its suppose to be shirley ly. can she still cash it? her acutal name is phung tieu ly.. i don't wana go ...


 Will opening up a new credit account lower my credit score??
I'm working on improving my credit score since I filed bankruptcy two years ago. I was told to open up a couple of credit cards. I just opened up a Lowe's credit card a week ago. As soon as ...


 Credit card?
i've never had one. can you please tell me the basics: how to prevent credit card debt, how to use your card wisely, and what type of credit card i should apply for, how to get/maintain good ...


 What should you do if you have credit cards that have been charged off and now are in collections.?
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 I have $5,000 in collections. my uncle is paying it off.how can i get if cleared off my credit or up my credit
my uncle inherited a lot of money. he is going to pay off my debt that is in collections. it is about $5,000 dollars. i heard that paying this off won't help my credit score and i will still ...


 I have so so credit and I got this card with a high annual fee?
Will this annual fee ever go down or will it be high forever. I don't have good credit but I am working on it.Thanks!!...


 What does your credit score need to be to get a mortgage?
I can put down between $20,000 to $40,000 and would like to know what my score has to be to get a mortgage. I live in Texas (if this helps). My credit could be better and is mostly school loans. D...


 Cash/Currency...Will it become Obsolete?
Do you believe one day (paper) money & Coin will no longer exist?
Will we all have a numbered card for identity and purchase?...


 Are lawsuit summons offical if they are sent through regular mail ?
i posted a question earlier about being sued for an old credit card account the summons was sent regular mail is it legit i am asking because i researched the compant thats trying to sue me and they ...


 Question about applying for credit cards?
If I go to a retail store and apply for a credit card, for instant approval they usually need another one of your credit cards to check it. Can you use a debit card for this purpose if it has a visa ...


 Can I buy this with a credit card?
I want to buy a t-shirt from the belle and sebastian website, but everything is priced in euroes. I live in America. Can I use a credit card to buy something from the website, or would I be unable to,...


 Can i clear my credit score as it is really bad?
i heard some where you can some how get it wiped clear so it looks like you have not had bad credit can any one ...


 I am an authorized user on my fiance's credit card.?
Does this help my credit since he is very responsible and has high limits?...



Lola Rice
Can someone please explain to me what the "credit crunch" is in laymens terms?
                     
 




soundman_jaybee
Rating
It's quite an involved series of events, but is basically the result of bad lending/ bad borrowing.
We have been living on credit for a long time and our economy has become overly dependent on credit. This all came to a head with the 'sub-prime mortgage problems' where people were sold mortgages when they would not be in a position to repay them. The lenders has assumed they would be able to repossess to get their money back but the drop in housing prices meant that they couldn't. This affected global banks badly as they had 'bought' these bad debts.
http://www.thecreditcruncher.com/2008/06/sub-prime-mortgages-are-to-blame.html
The current crisis however has combined with static wages and rocketing prices to accelerate us into a recession which is just around the corner.
http://www.thecreditcruncher.com/2008/08/are-we-in-recession.html
Frankly we are paying for our over-use of credit, and not before time...


Joe K
Rating
Banks and other financial institutions (companies with money) were lending money to people by borrowing money from other companies. All was well and good until the person who actually lent the money stopped getting paid back. They in turn, stopped lending money to banks and financial institutions or at least they began to make it more difficult to borrow those funds.

In part some of the answers above are spot on - people borrowed money they could not repay because it was easy to get it and everyone wanted to give it to them. Since many of these nice people either could not or did not repay the loan, people stopped wanting to lend money - aka "credit crunch".

I guess this could be defined as a period in time where it is difficult to borrow (get credit) money. In some ways crunch is a euphemism for other less understood or more derogatory terms (aka disaster). Credit Crunch kind of is the layman's term :)

Hope that helps.

Joe...


Jack X
Mortgages are failing, leaving banks holding billions in defaulted loans. They, in turn, have less to lend.


aivi15h
A few years ago banks lent out tons of money to just about anyone. Lots of these folks didn't pay it back and the banks lost tons of money. So to recover there losses it is now a lot harder to qualify for a loan. And if you do its usually at a much higher intrest rate.


Mark! G
It is a term used to describe a sudden reduction in the general availability of loans (or "credit"), or a sudden increase in the cost of obtaining loans from the banks.


monkeynut
It's a new breakfast cereal that is enjoyable to eat when you buy it but will be excruciatingly painful in less than 24 hours when you have to dump it.


robert g
too many people owe too much money.


heybulldog
Rating
fico score lending. Banks lent people money based on a stupid number instead of looking at their financial situation. They then defaulted on loans.


razor face
Rating
thats when you crunches with your credit cards. lol


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