Roughly one out of every four Americans who hold a credit card — nearly 50 million people — saw their credit limits slashed or accounts involuntarily closed altogether by lenders over the past month, according to a new survey.
CompareCards, the Lending Tree site that conducted the survey, was so struck by the high numbers that it ran the survey a second time to be assured of the fallout to cash-strapped consumers hit with staggering unemployment due to the coronavirus crisis.
What are the details?
CBS News reported the findings, noting that “many lenders made their moves in the past month to avert losses if cash-strapped consumers struggle to keep up with payments amid surging U.S. unemployment.”
The outlet added, “The credit curbs happened just when household budgets are particularly strained from coronavirus-related job losses and families are believed to be using their cards more frequently. The Lending Tree survey reports that 42% more cardholders said they used their credit card in the last month compared to the same period last year.”