Credit Card Companies May Lower Your Limit
According to the Daily Mail, several major credit card companies are moving in the direction of lowering the credit limits of their customers over the economic downturn brought on by the coronavirus.
Both Discover and Synchrony Financial are discussing making changes.
Synchrony Financial, which handles cards for Amazon, J.C. Penney, and Gap, has announced they intend to reevaluate each customer's "creditworthiness". This could mean an increase to that customer's limit, but most likely, will lead to a decrease.
Discover Financial Services is easing off efforts to sign up new customers and it is expected they may soon begin reevaluating their current customers "creditworthiness", too..
Citi, Chase and Capital One have not officially announced changes to customer credit limits, but have clauses in their contracts that allow them to make those changes at any time.
This may come as a surprise to some, but Visa and MasterCard do not actually issue cards or maintain credit accounts. Instead, they work with banks that issue cards that use their payment network.
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