Coronavirus and credit cards: Five key trends
During a time of business lockdowns and layoffs amid the general population attempting to stay healthy during the coronavirus crisis, one thing is quickly bubbling to the surface of the minds of consumers, small-business owners, banks and regulators: The state of the credit card market, and where it could go from here.
As jobless claims soar by 4.4 million for the week ending April 18, 2020 according to the Department of Labor — bringing the insured unemployment rate to 11% — there is a growing realization that the country has entered into a recession. Along with the dire economic situation, there is a distinct possibility that they may be some blowback in the credit card sector that could impact consumers and banks.
Even with a country eager to reopen for business, the coronavirus is showing few signs of abating as it has infected more than 2.73 million people worldwide (869,000 in the U.S.) and killed over 191,000 (over 49,000 in the U.S.) according to Johns Hopkins University’s Coronavirus Resource Center.