Banks are Cutting Their Risk By Cutting Your Credit Card Limits

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On this Wednesday may twentieth. Hey have you applied for a new credit card in the last couple of months if so and if you've had trouble getting approved well you're in good company? Given all the financial uncertainty were experiencing right. Now banks are nervous so they're making it much tougher to qualify for new cards to avoid taking on customers. Who may not be able to pay their bills. According to the Saint Louis Federal Reserve forty percent of. Us Bank say. They're getting choosier about who they lend money to. Where that's issuing credit cards or personal loans? That's the biggest pull back in lending since two thousand nine. According to see net among the biggest lenders to play defense this way discover financial services apply for a discover card. And you'll find the company verifying your employment not just your credit score and if you are approved your credit limit may well be less than you'd hope for on recent earnings called discover CEO. Roger Hawks Trial said the company's taking these and other steps to quote curtail risk to put it more plainly discover and other financial institutions. WanNa make sure they don't get saddled with too much. Unpaid debt pre pandemic discover had been growing steadily and profitably twenty. Nineteen was a good year and the company was expecting twenty twenty to be even better instead. Discover lost about sixty million dollars in the first quarter of this year and its future like the future of so many other businesses is clearly uncertain which is to say things may not be any easier at the other major credit card companies both city and capital. One say they are also tightening up credit requirements C net reports. Okay so maybe you can't get a new card and you haven't seen one of those zero balanced transfer offers that to flood your mailbox in months but that's not all. Some companies are reducing credit limits for existing customers. It's happening a lot one out of four American credit card users. That's fifty million. People have had their credit limits slashed on at least one card in the previous thirty days some have even had an account closed. That's according to a survey by compare cards a service owned by lending tree. Those changes are hitting Gen Z. Millennials and Gen xers equally according to see net. Apparently baby boomers are being spared so far. This is a tough thing to have happened. If you've just lost your job or you expect to and it often comes as a rather ugly surprise credit cards dot com analysts had rosman told Marketwatch. Most people don't realize how much freedom credit card issuers have to cut limits or even cancel cards without warning companies that acknowledged they're assessing credit limits. Include Wells Fargo. Us Bank in American Express and American Express spokesperson told Marketwatch that the company is based in credit limits on quote real time. Evaluations of a person's financial help so too is synchrony financial which issue store credit cards including JC Penney. Gap and American Eagle outfitters discovers. Roger Hawks child however is expressly said the company is not slashing credit limits or closing inactive accounts given the millions of Americans who are now jobless hawks trial call those actions challenging according to Bloomberg. Pulling away credit. When they need it most can have tremendously adverse impacts hawks trial set indeed. Many people rely on credit cards as emergency funds in April about a month into lockdowns about forty seven percent of Americans had credit card debt. That's up four points from March. According to a survey by CREDIT CARDS DOT COM and having your credit limit reduced or a card cancelled can hurt your credit score. Even as news rolls out about the new challenges of getting and keeping credit banks are also enrolling people in programs intended to help almost half a million discover account holders signed up for its skip a payment program. Those account holders have balances of more than three and a half billion dollars altogether. Yes you heard that right. Billion WITH A B. Other issuers are also

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