Credit starts to tighten as job losses remain high – WXYZ Detroit

July 22, 2020
By: Greenpath Financial Wellness
GreenPath Financial Wellness is a trusted national nonprofit with more than 60-years of helping people build financial health and resiliency. Our NFCC-certified counselors give you options to manage credit card debt, student loans and homeownership.

Excerpt from the Detroit Free Press’ story, Credit starts to tighten as job losses remain high.

Featuring Kristen Holt, president & CEO, and Jeremy Lark, senior manager of client services

A recent Detroit Free Press article shares that a pandemic relief assistance is ending, many people are still struggling and are turning to credit cards, only to find reduced credit limits and closed accounts.

A survey from CompareCards shows that 30% of credit cardholders had their credit limit reduced on at least one card in the past 60 days.

Because they don’t have as long of a credit history, Millenials may find this is the case more than people in their 40s, 50s, and 60s.

Many credit card issuers had been working with consumers to let them skip minimum payments for two months early in the pandemic, said Kristen Holt, president and CEO of Farmington Hills-based GreenPath Financial Wellness.

Jeremy Lark, senior manager of client services for GreenPath Financial Wellness, said he’s heard from consumers who saw major credit card issuers reduce their lines of credit and many times people didn’t even realize that they suddenly had a smaller line of credit.

Having your credit limit lowered can lead to your credit score falling.

3 TIPS FOR CARDHOLDERS:

1. Call your card issuer to see if your limit can be raised

2. Keep balances low on your accounts

3. Review your credit report to see limits have been lowered or accounts have been closed.

Continue here to read the entire article at the Detroit Free Press.

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Kristen Holt is president and CEO of GreenPath Financial Wellness based in Farmington Hills, Mich. GreenPath is a national nonprofit that supports lifelong financial wellness for everyone.

Jeremy Final

Jeremy Lark is dedicated to combating financial strife and stress through financial wellness, education, and technology. Through his work as Senior Manager of Client Services, he has helped GreenPath’s clients find the tools and resources they need to turn their lives around. Jeremy has been with GreenPath for 12 years, and while a born-and-bred Yooper, currently resides in the Detroit area.