Credit card is changing the ecosystem of online payment. It is quite evident that the number of credit card transaction is increased amid coronavirus outbreak. Offline merchants are facing major issues in the cash flow in their business. Therefore, they are making online shift in order deal with the present competitive situation. However, the scenario is not good for the credit card users and for those who have applied for new credit cards.
Before the arrival of COVID-19, card and banks were giving attractive credit card offers to the Americans. But, now the situation is completely different. According to a data published by Comperemedia, the card companies have reduced their offers by 70% to 80%. Many Americans have lost their job due to coronavirus pandemic and this is why credit card companies have stopped providing attractive offers to mitigate the card debt.
Matt Schulz, chief industry analyst at Lending Tree is of the opinion that the situation has become very weird. In such a situation, banks do not want to take any additional risk.
Big card companies such as American Express and Capital One did not allow. The customers having good credit score to transfer. The card balance to the bank accounts in the best of times. Now, when the situation becomes out of control, it is very difficult to determine the safe customers. The financial life has been hampered and as a result, many card companies are not providing attractive offers to the existing customers.
Mark Miller, the associate director of insights and payments at Comperemedia said that. If the cardholders miss to give payment of one instalment, it will not affect the overall credit card score amid coronavirus pandemic situation.
However, some companies might face difficulties amid this pandemic situation. But, on the other sides, some companies are trying to utilize this situation properly. They are offering zero interest cards, longer-terms and debt consolidation.
Many companies are trying to build a good relationship with the customers. It will enhance their customer base and as a result, the overall cash flow for such institutions will be enhanced.
Good news is that, people are receiving financial support from the government and therefore. It will not be difficult for them to handle the credit card debt. On the other side, credit card companies urged the government to release a new relief bill. Otherwise, such companies will have to deal with difficult situation.