Millions of credit card users are seeing their cards closed or limits lowered during pandemic – WXYZ Detroit
- July 7, 2020
- By: Greenpath Financial Wellness
Excerpt and video from WXYZ Detroit’s story, Millions of credit card users are seeing their cards closed or limits lowered during the pandemic.
Featuring Jeremy Lark, senior manager of client services
A recent WXYZ TV Detroit feature highlighted the challenges people are facing with having their credit card limits reduced.
The impact is serious to those people who are out of work or stressed financially during this pandemic. It is these people who may be relying on their credit cards for some emergency relief.
A report from CompareCards shows that 25% of credit cardholders saw their limit slashed and/or their card closed altogether within the past 30 days before the survey – all during this pandemic.
“It absolutely is a trend,” said Jeremy Lark, Senior Manager of Client Services at GreenPath.
Lark said most Americans don’t realize that card issuers can close cards or decrease the limits without your knowledge. And the companies are doing this now, he said, to try to reduce their risk exposure.
WXYZ asked him what can consumers do about this?
“We recommend that consumers reach out to their card issuer to ask for an explanation of why this happened and to see if they might even change their decision. They may or they may not. But it’s worth a try,” said Lark.
“Keeping your balances low and your credit limit high will increase your chances of keeping you accounts open and your credit limits at their full potential,” said Lark.
Some card issuers are offering deferred payments and deferred interest for financially-strapped consumers right now. But Lark said that interest keeps running on most of the accounts. So, cardholders need to be prepared to make those payments when they become due.
And, for those who may want to close their accounts down arbitrarily, Lark said that could have a negative impact on their credit score. So, people should always consult a financial adviser or credit counselor before making that move.
HERE ARE FOUR GOALS GREENPATH ENCOURAGES CARDHOLDERS TO MAKE:
1. Watch your credit reports and credit usage
2. Keep balances low on your accounts
3. Make payments on time
4. Pay off balances completely when you can
Continue here to read the entire article at WXYZ Detroit.
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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.