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Credit Cards Slash $99 Billion From Spending Limits During Pandemic
Some people had complained as limits began dropping. Now the full scope is emerging.
Photographer: Westend61 via Getty Images
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The notices went out to one cardholder after another, sparking complaints. Big banks were trimming credit limits by hundreds or thousands of dollars as the Covid-19 pandemic spread. None were saying how far it would go.
The answer: The 14 lenders that dominate U.S. credit cards slashed $99 billion from their customers’ spending limits in 2020, mostly affecting financially troubled households. It’s the equivalent of cutting $2,000 in financing to 50 million people -- many of whom lean on cards for emergencies.