These are the new upcoming changes to your credit score and credit cards – and what this means going forward,
FIRST CHANGE: Thanks to ASKSEBBY for covering this earlier!
Credit Card companies are becoming more strict about approvals, and might be verifying your income by requiring a 4506T form which allows them to view your tax return with the IRS.
SECOND CHANGE: Credit Limits are being decreased with no advance notice
Credit limit DECREASES during this time – from a credit card company perspective – make sense. If someone loses their job or begins using up their savings – then typically, credit cards are next in line. And, if people don’t soon get jobs to be able to repay those cards – the payments will then go into default, and that hurts the credit card companies’ bottom line.
HOWEVER…the downside of this, to you as the consumer, is that – if your credit line decreases, so could your credit score. That’s because 30% of your credit score is made up of your “Credit Utilization,” or – in other words – how much credit you have available to you, versus how much you actually use.
Credit Cards are offering new different rewards. We’ll start with the American Express Platinum, one of my all-time favorite credit cards…and they’re EXTENDING the deadline for the signup bonus by 3 months. In addition to that, the American Express Platinum card is adding a $20 per month streaming credit from May 1st until December 31st when you pay for those services with your credit card. That includes Netflix, Hulu, Spotify, and even YOUTUBE PREMIUM.