Know More About Credit Card Issuers Raising Credit Lines
Take business credit cards and loans for starters. As soon as the pandemic hit, U.S. lenders and credit card companies reacted by slashing credit limits and slowing down lending Situs Nonton Movie Sub Indo. That made a bad situation untenable for many small businesses who needed access to credit to keep operations going.
“Sometime in March, traditional credit providers had a massive knee jerk reaction and pulled back hard. Loans became extremely hard to get, increasing the rate of business failures,” said Gulati. “It was the first time in the credit card industry that line reductions happened in a matter of days and weeks.”
During the recession of 2008 and 2009, it took banks and credit card companies months to react, but advances in technology and integration with business bank accounts make it much easier to see the red flags in 2020 and react.
As we put 2020 behind us, credit card companies are better able to gauge COVID-19 risk and are more comfortable extending credit.
“We’re starting to see more progressive card issuers increase lines again,” said Gulati. “Credit issuing partners are telling us they have big plans for 2021 and come to us for help figuring out when it’s safe to lend and increase lines again.”
But, increased credit isn’t available across the board. Gulati said credit lines are increasing for sectors that have held up during the pandemic including e-commerce, healthcare, construction, and professional services.