Credit Card Companies Respond to COVID

Credit Card Companies Respond to COVID

( – In the past 5 weeks, over 26 million Americans have filed for unemployment as a result of the ongoing pandemic. As families across the country struggle to make ends meet, banks and credit card companies say the rise of “skip-a-payment” type programs are starting to take a financial toll on their bottom line.

Some major credit card companies like Synchrony Financial, which issues cards like J.C. Penny Co., Gap Inc., and American Eagle Outfitters Inc., say they’ll be “reevaluating a customer’s creditworthiness” to determine changes to their accounts.

One of the largest credit card lenders, Discover Financial Services, has also started making necessary changes to reduce profit loss. It’s restricting the number of new customer accounts it signs up. The company’s reporting $3.6 billion in credit card balances currently in its “skip-a-payment” program. 

While major lenders are making changes to mitigate their financial losses, there are a few things you can do to help get some credit card and banking relief.

Americans can expect more banks and credit card companies to make cutbacks. Even as state governments move to reopen their economies and get people back to work, there’s still a lot of uncertainty on the short- and long-term financial impact of COVID-19.

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