Coronavirus Pandemic Continuing To Cause Financial Concerns For Credit Card Companies, Lenders And Borrowers

By: KDKA-TV News Staff


PITTSBURGH (KDKA) — The Coronavirus pandemic has caused repercussions that no one could have anticipated, including a person with good credit have their credit cards canceled.


KDKA’s John Shumway looked into why that would happen.


You mind your own business, pay your bills, and this still happens.


Call it a product of ‘COVID Caution.’


But this has nothing to do with the virus itself.


It has to do with people who have lost their jobs and are trying to make ends meet.


Since early May, credit card companies have been taking a closer look at the credit they have extended to their customers.


Mark Rossman from CreditCards.com says that some customers are getting their limits reduced, while others are losing their cards.


Rossman cautions that if you could have a card that you never use anywhere close to the amount available, the bank might reduce that limit.


If you think that’s no big deal, you’re wrong. The limit being reduced then reduced your debt-to-credit limit ratio and that’s not good for your credit report.


Once a chance is made to your card, it may be hard to get the bank or the credit card company to reverse the decision.