Between May 2020-July 2020, credit card companies have reduced limits or closed credit cards entirely and involuntarily to more than 70 million people. This number may be growing as economic concerns linger and the pandemic continues.
With millions of people unemployed, millions not paying their mortgage, and many unknowns during this crazy year (then add an election in there!), credit card companies are scared they are going to be left holding the bag. Much like what happened back during the last recession, credit card companies are trying to limit their exposure to loss. However, if it is a credit card that you have had for many years, its closure can hurt your credit history and a reduced limit can hinder a great debt utilization factor which in turn would lower your credit scores.
Listen in for your warning and a few suggestions to help protect yourself as much as possible.
