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Do you think the tax bill will affect credit?

C

Clipper

New member
What do you guys think?

The bill passed and it is improving a lot already I see. More outside investors are coming in to the US and bringing loads of money. I see Verizon gave every single employee $1000 just because they got the tax break. It sounds all good but I am wondering how it will or if it will change credit at all.
 
Credit is usually driven by the prime interest rate. That's the rate the federal banks lend out money to other banks. Loans tend to be prime plus a percentage, credit cards same thing. When economies slow rates tend to drop to encourage lending to companies and spur economic growth.
 
I think more people will be inclined to shop with extra money going around so I could see more people using cards on a more "free" basis vs watching every penny. In that sense I can see credit companies feeding slight discounts in APR and such.
 
Not in a direct sense, no. Credit isn't really based on tax but dependent on it in the sense that Tera mentioned. Better tax breaks = more spending.
 
Poet said:
Not in a direct sense, no. Credit isn't really based on tax but dependent on it in the sense that Tera mentioned. Better tax breaks = more spending.
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Yeah people will end up having extra money and thus end up using cards more or opening new cards in general. I never understood that. Like if you have the money, why not just use the money instead of overspending using plastic?
 
I see a lot of companies giving back to their workers because they are saving so much money so maybe people will be less inclined to use plastic because they have extra cash?
 
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