Capital One is one of the best financial corporation companies. The Headquarter of this company is in McLean, Virginia. Capital One offers auto loans, savings accounts, banking, and credit cards. Over the course of time, the number of credit card transactions has been increased. After the arrival of COVID-19, people understood the efficiencies of online transactions. Well, experts are of the opinion that COVID-19 has completely closed the tendency of making cash transactions.
COVID-19 has brought damage to every sphere. Consequently, many people have lost their jobs. Well, the credit card companies know this bitter truth very well. This is why Capital One is cutting the credit card limit. However, they are not taking this step for all customers. Depending upon the consumer’s credit history, Capital One is making this change in the credit card limit.
According to a new report, Capital One cardholders are reporting on social media as their credit card limit has been reduced by the credit card issuer.
Capital One is considered as the third largest card issuer and the company has taken this step after the $600 weekly unemployment benefit gets expired. According to Oxford Economics, the present situation will definitely put the consumers into depression, and therefore, card issuers are taking this preventive step. Otherwise, complications will arrive while recovering the credit card debt.
Credit card issuer companies like Capital One has realized that people could face economic difficulties in the coming months. Therefore, they are controlling the reins. Matt Schulz, a chief industry analyst at ComapareCards.com is of the opinion that it does not matter whether people are using their credit cards at this point or not, banks will make sure that you don’t start using cards at this time. Well, it might lead to financial trouble and there is no financial institution that wants this situation at this time.
However, it is not only the Capital One customers that are facing this issue. People across the globe are facing this situation. Even, old customers of Capital One are facing the cut in credit card limit.
According to a report, almost one-third of credit cardholders in the U.S. had seen the cut in their credit card limits. However, a Capital One spokesperson is of the opinion that there is significantly a good amount of credit card limit that allows online shoppers to purchase the required things.
In addition to this, the cardholders must improve their credit card score in order to get another credit card.