Issuers must weigh the risk of missed payments during the pandemic - Business Insider

And the pandemic has had a particularly strong impact on spending for travel, a key category for issuers, per . Issuers have a number of cobranded cards and benefits tied to airlines and hotels that are likely to hold much less appeal to consumers in the wake of the crisis. And considering Amex saw its volume plunge in March and Discover is seeing a serious drop in April, the coronavirus is likely set to do even more damage to issuers' performances in Q2.

The pandemic is making it hard for some cardholders to make card payments, raising questions about how much issuers should encourage spending. Millions of cardholders are skipping their credit card bills due to the effects of the pandemic, per to miss a credit card payment in 2020, with many citing a lack of funds as the reason why, but now the coronavirus is exacerbating the issue. So, although it makes sense for issuers to push cardholders to spend more with new perks to raise their falling sales volumes, they must be wary of the possibility that the cardholders they're encouraging to spend won't be able to make their bill payments later on.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Here are 3 Democratic plans for additional stimulus checks for Americans - Business InsiderDemocrats are getting behind the idea of more stimulus checks to Americans. Here are 3 plans that could be part of the next coronavirus relief bill. stinginthetail Nothing to do with politics, but Nancy sure has dress style doesn’t she.. Even when it comes to masks, ScarfLady puts her own stamp on it! It’s all good until that $1200 can’t buy a loaf of bread because the dollar is worthless
Source: BusinessInsider - 🏆 729. / 51 Read more »

Credit card issuers lower credit limits during coronavirus: What to do - Business InsiderLower credit limits can increase your credit utilization, which impacts your credit score. Ask the issuer if you can get your credit line restored.
Source: BusinessInsider - 🏆 729. / 51 Read more »

States reopening their economies during the coronavirus pandemic - Business InsiderFlorida, Georgia, and South Carolina were the first to reopen parts of their economies, and more have joined them since.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Should I make federal student loan payments right now? It depends - Business InsiderFederal student loans are in automatic forbearance during the coronavirus pandemic. Although you can make extra payments, you might not want to.
Source: BusinessInsider - 🏆 729. / 51 Read more »