As the economic fallout of the pandemic continues to unfold, banks are rushing to close credit card accounts or slash credit limits to curb their risk.
One in 4 Americans with credit cards said they had an account involuntarily shut down from mid-May to mid-July, while 1 in 3 said their credit limit was reduced, according to a new report from CompareCards.com that surveyed 1,003 credit cardholders.
This follows a similar rate of reductions in April and comes as many Americans battle joblessness and uncertain economic futures, but now with reduced access to credit.
“These are really big numbers,” said Matt Schulz, chief industry analyst at CompareCards. “It means that an awful lot of Americans had one of their financial security nets taken out from under them in one of the most difficult economic times in American history.”