Credit card issuers offer customer assistance in response to coronavirus - Bankrate.com

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As coronavirus (COVID-19) continues to incite global economic fears and threaten public health, credit card issuers are beginning to roll out assistance programs for cardholders who may be financially affected by the outbreak.

Credit card issuers and networks are seeing impact from the virus, too. Already, Visa and Mastercard have made cuts to their revenue outlooks in response to decreased spending, especially on travel.

And as more cardholders’ wallets across the country are affected, whether by a decline in business, reduced work schedules or other limitations to income, banks are responding by implementing assistance programs.

Here’s a rundown of what’s being offered so far and other options you may have if you face payment difficulties:

Issuer assistance

In response to the virus outbreak so far, Citi and Wells Fargo both released statements regarding their ongoing monitoring and response for customers. For credit cardholders specifically, here’s what each issuer stated:

Citi

Eligible credit cardholders may make use of “always on” assistance programs, which include credit line increases and collection forbearance options.

Wells Fargo

Customers experiencing hardship related to coronavirus and in need of assistance are encouraged to call 1-800-219-9739 to speak with a trained specialist about available options.

More options

If you’re facing financial hardship and finding it difficult to meet your payment minimums, some issuer-specific options may not be the best fit for you.

“I’d advise against forbearance unless you’re really desperate, because interest still accrues,” says Ted Rossman, industry analyst at Bankrate. “All that would do is get you out of paying the monthly minimum for a time, but you’d end up paying extra later on.”

Forbearance plans offered by your issuer may include postponing payments for several months, lowering monthly minimum payments or even eliminating some fees. But you should consider forbearance as a last resort. Reach out to your issuer first to discuss your individual circumstances.

“If you’re really in a pinch, contact your credit card company and explain your specific situation,” Rossman says. “Maybe they can offer you a better deal.”

Consider other options, as well. If you have an emergency savings, this may be a time that necessitates dipping into it. If your credit is healthy enough to qualify for a card with a zero percent introductory rate on balance transfers, that could help stave off mounting interest payments for a few months. You may want to look into a personal loan with a lower interest rate as well.

Consider seeking assistance within your community, too, from community centers and places of worship or even friends and neighbors. Rossman also recommends looking into nonprofit credit counseling services for assistance developing a plan to pay off your debts. Look for those endorsed by the National Foundation for Credit Counseling.

Bankrate will continue to monitor credit card issuer responses to coronavirus and update this story as more information becomes available.