Credit cards have become as much a part of our financial lives as checking accounts. For some, being approved for an unsecured credit card is out of reach for a variety of reasons. People with challenging credit situations are turning to secured credit cards as an avenue to achieve credit-worthiness, with attaining unsecured credit as the ultimate goal. What are the factors that expedite graduation from secured to unsecured credit?
Federal Reserve System
The United States will soon break a record: the longest period of economic expansion, last set in the 1990s. But some don’t see this growth continuing much longer; they expect a recession, or even a depression, to extinguish the growth trajectory the world’s largest economy has been following for nearly a decade. Are these fears justified? Or are there as many reasons to expect the economy to continue to soar, shattering all records?
The good news is that economic growth globally is strong, with a few exceptions, as the world shakes off the effects of the Great Recession. But economists are uneasy about troubling undercurrents, such as protectionist trade policies, that could whip up into a global trade war. Most are hoping that trade relationships can be repaired, acknowledging that the time is now to rebuild rather than burn bridges.
U.S. banks are highly profitable and supporting of economic activity, as they were prior to the 2008-09 financial crisis. It is important to remember how quickly conditions can change. As a result of post-crisis prudential reforms, banks have bolstered their capital and liquidity. It is essential to preserve these hard-won improvements. It would be a mistake to assume that a severe downturn or crisis cannot happen again.