This Week In Credit Card News: More Issuers Cut Credit Limits; Card Use Takes Huge Drop During Pandemic

Credit Card Use Dives in March by Most Since 1989

Revolving credit, like credit cards, fell $28.2 billion, or 30.9% annual rate in March. That’s the biggest percentage decline since January 1989. Weaker personal income growth and rapid job losses kept consumers from using credit in March. A Fed survey of senior loan officers reported tightening lending standards and weakening demand for credit cards and auto loans. [MarketWatch]

Credit Card Issuers Start to Lower Cardholder Limits

It appears that everyone is tightening their belts during the coronavirus pandemic, even credit card companies. A new survey has found that about 25% of card owners in the US had their limits reduced or accounts closed within the past 30 days. Almost 50 million people saw their credit limits decreased or cards closed involuntary, according to a CompareCards survey conducted in late April. Credit card issuers tend to lower limits or close accounts to reduce their risk, especially in a financial crisis like the one happening across the globe. [CNet]

Now You Can Check Your Credit Files Once a Week for Free

The three major credit-reporting agencies are making it easy for you to track what’s happening to your credit history in real time. You can now access your credit files for Equifax
EFX
, Experian, and TransUnion
TRU
once a week through April 2021. Before, you could only do that for free every 12 months. Your credit file isn’t a credit score; it’s the information used to generate credit scores. That’s why it’s so important to make sure the data in your files is accurate. [Consumers’ Checkbook]

Why Using All Your Credit Cards Now Will Protect Your Finances

Unusual times call for unusual advice, which is why I’m now saying something I never expected to while doing my job: Go out and use all of your credit cards. The advice has nothing to do with racking up debt and everything to do with protecting your available credit and credit score. Use all of your credit cards, especially the ones you normally don’t. When times get tough, lenders go turtle. Banks and credit-card issuers aren’t taking all new credit offers off the table, but they are cleaning up their books. [Seattle Times]

Samsung Will Introduce an ‘Innovative’ Debit Card This Summer

Samsung wants to do more with payments than offer a virtual prepaid card. The company plans to grow Samsung Pay this summer by introducing a new “experience” that includes an “innovative” debit card supported by a cash management account. [Engadget]

Select Chase Credit Cards Earn Up to 5x Points on Groceries Through June

If you have a Chase travel card, the card issuer has just added a new reason to keep your card open. Chase travel cards with annual fees now earn either 3 points per $1 or 5 points per $1 on grocery purchases. That includes purchases made in-store and through grocery delivery services, up to a maximum of $1,500 in spending per month. This new rate applies through June 30, 2020. [The Motley Fool]

Citi Announces Changes to Help Cardholders Maximize Benefits During Coronavirus

New cardholders who applied for a Citi credit card between Dec. 1, 2019, and May 31, 2020, will get an additional three months to hit the spending requirement. You’ll get a total of 6-7 months to hit your bonus if you applied (or will apply) between those dates. This extension is only for the sign-up bonus deadline, not for other promotional intro offers such as a 0% APR offer. [The Points Guy]

Online Food Orders, Delivery Surge Amid COVID-19 Lockdown

Restaurant traffic declined by 22% in March compared to the same month a year ago. However, as a testament to U.S. consumers’ desires for someone, other than themselves, to make their meals, digital restaurant orders increased by 63% and delivery by 67% in March, according to The NPD Group. [Mobile Payments Today]

American Express Says COVID-19 Hits Cardholder Spending

American Express says the COVID-19 pandemic has impacted cardholder spending and will force it to pare down costs. Revenue fell 1%, to $10.3 billion in the quarter, reflecting reduced cardholder spending that began in late February. Stephen Squeri, chairman and CEO, said “The deterioration in the economy due to COVID-19 impacts that began during the first quarter and accelerated in April has dramatically impacted our volumes.” [Mobile Payments Today]

Stripe Adds Card Issuing, Localized Card Networks and Expanded Approvals

At a time when more transactions than ever are happening online, payments behemoth Stripe is announcing several new features to continue expanding its reach. The company announced it will now offer card issuing services directly to businesses to let them in turn make credit cards for customers tailored to specific purposes. And it’s launching a “revenue optimization” feature that essentially will use Stripe’s AI algorithms to reassess and approve more flagged transactions that might have otherwise been rejected in the past. [Tech Crunch]

Cash Flow is ‘More Important Than Ever’ While PPP Loans Stall. How Small Business Credit Cards Can Help

The federally-funded Paycheck Protection Program (PPP) dried up on April 16 and was replenished on April 24 with an additional $310 billion in forgivable loans — but it still may not be enough. Facing unexpected cash flow issues amid the unprecedented economic downturn, small business owners are scrambling to find resources to help them stay afloat and prepare for what may be years-long economic recovery. Many look to credit cards to mitigate the current dip in revenue. [CNBC]