LowCards.com Weekly Credit Card Update–August 14, 2020

LowCards.com Weekly Credit Card Update–August 14, 2020

August 14, 2020         Written By Bill Hardekopf

Goldman Sachs Vies For GM’s Credit Card, Betting You’ll Buy Coffee With Your Car
Goldman Sachs is seeking to acquire the credit card business of General Motors, doubling down on consumer banking and betting on a future where people pay for gas, takeout and groceries from the driver’s seat. The firm is among a small number of bidders for the auto maker’s credit card business, which has about $3 billion in outstanding balances. Story by Liz Hoffman and AnnaMaria Andriotis for The Wall Street Journal

New Report Shows Historic Drop In Credit Card Debt Amid The Coronavirus Pandemic
In the months since the coronavirus pandemic hit and sent millions of Americans to shelter at home, consumers’ credit card debt has fallen fast to unprecedented levels. According to a new report, the second quarter of 2020 saw a staggering $82 billion decline in credit card balances. A drop this big in the second quarter of the year hasn’t happened since at least two decades ago. Story by Elizabeth Gravler for CNBC

Featured Fair Credit Card

Top Features:

All credit types welcome to apply!

Credit Card Spend Declines As Enhanced Unemployment Benefits Lapse
The expiration of enhanced unemployment benefits at the end of July may already be having an impact on consumers. According to PSCU’s latest shopping trends analysis, overall card payment growth rates trended downward for the week ending Aug. 4, just a few days after the $600 benefits initiative provided by the Federal CARES Act was allowed to lapse. Debit card spend was up only 11.9%, which dropped from the prior four-week average of 17.9%. Credit card spend also suffered a similar decline, down 4.3% year-over-year. Story by Frank Ready for Credit Union Times

The Newest Fintech Unicorn Is A Credit Card, And It’s Betting Against Big Banks
Two demographics inspired fintech start-up cred.ai to create its Unicorn Card: banking newcomers and millennial/Gen Z Americans with weak credit histories who are distrustful of the financial system. The CFPB says as many as 23 million Americans have a limited, if any, credit history. Competition is growing and includes the Apple Card, online bank Chime, and J.P. Morgan Chase, which recently launched a digital credit card with Marqeta. Story by Cameron Costa for CNBC

AmEx In Advanced Talks To Buy SoftBank-Backed Kabbage
American Express’s small-business aspirations just took another step forward. The credit card giant is in advanced talks to buy Kabbage, a deal that would make AmEx a bigger lender to mom and pop shops. The company is already the largest U.S. provider of credit cards to those types of operations. The online small-business lending industry has been battered by the coronavirus pandemic, forcing many firms to halt new originations and extend relief to borrowers who have had to shut their operations for months. Story by Jennifer Surane and Gillian Tan for Bloomberg

Square Tests Short-Term Loans On Cash App
Square is currently testing short-term loans with around 1,000 users with its peer-to-peer payments solution Cash App. It is currently offering loans in amounts between $20 and $200. Users who receive these loans will need to pay it back in four weeks, along with a flat fee of 5% (an APR of 60%). If users do not pay off the loan after four weeks, they’ll get an additional one-week grace period, then Cash App will start adding 1.25% non-compounding interest each week. Story in Mobile Payments Today

PayPal and eBay Credit Cards Sweeten Welcome Bonus Offers for a Limited Time
If you have been considering adding a PayPal or eBay credit card to your wallet, now might be a good time to make the move. Both companies have temporarily upped their welcome bonus offers for select new credit card applicants. The PayPal Cashback Mastercard is offering select customers a chance at 4% cash back on everyday purchases for a limited time. And the eBay Mastercard has raised its welcome bonus offer to $150. Story by Nick Cole for Clark.com

Just Over 7% Of Auto And Personal Loans Are In Financial Hardship Programs
Just over 7% of auto and personal loans are in some type of financial hardship program as of June, while 6.79% of mortgages and 3.57% of credit card accounts are in some kind of payment relief. That’s according to TransUnion, which defines financial hardship plans as a deferred payment, forbearance program, frozen account or frozen past due payment. Overall, 4.64% of all auto, bankcard, mortgage and unsecured personal loans accounts were in a hardship plan in June. Story by Megan Leonhardt for CNBC

What Mastercard’s Crypto Plans Signal For The Future Of Digital Payments
Major payment companies have long looked on at cryptocurrencies as too risky to touch, but too tempting to ignore. Mastercard’s latest move signals that the card brands are ready to make a firm pitch for crypto spending. Mastercard made its first significant move into cryptocurrency products in July, announcing Wirex as the first crypto provider to roll out a product through Mastercard Accelerate, which Mastercard has primed as a turnkey launching pad for other cryptocurrency providers. Story by Kate Fitzgerald for Payments Source

What It Will Take For Business To Finally Get Rid Of The Paper Check
U.S. consumers don’t exactly love the paper check. Roughly 38% report that they’ve stopped using them entirely, and that shoots up to almost 50% when talking about millennials. Some 70% of consumers report wanting an instant payout option (defined as within five seconds), while 44% say they’re willing to pay a small fee to access their money instantly and electronically. Story in PYMNTS

Google Pay Will Support Mobile Checking Accounts Starting Next Year
Google is getting into mobile banking through a new partnership with a total of eight US-based banks, including the US division of the Bank of Montreal and BBVA. The bank accounts will exist entirely within Google Pay, with customers able to access checking accounts handled digitally on the front end by Google while partner banks handle the infrastructure, FDIC insurance, and other backend technology. The banking feature is slated to go live sometime in 2021. Story by Nick Statt for The Verge

The information contained within this article was accurate as of August 14, 2020. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

Review LowCards.com Editor’s Top Cards!

2020 Top Credit Cards by Category
Featured Fair Credit Card
Reflex Mastercard® Credit Card
EDITOR RATING
Featured Fair Credit Card
Reflex Mastercard® Credit Card

Applying for this card will securely direct you to the issuer's website.

Top Features: All credit types welcome to apply!

Featured Secured Card
Assent Platinum 0% Intro Rate Mastercard Secured Credit Card
EDITOR RATING
Featured Secured Card
Assent Platinum 0% Intro Rate Mastercard Secured Credit Card

Applying for this card will securely direct you to the issuer's website.

Top Features: Intro APR Offer on Purchases, No Annual Fee For First Year

Featured Bad Credit Card
First Digital NextGen Mastercard® Credit Card
EDITOR RATING
Featured Bad Credit Card
First Digital NextGen Mastercard® Credit Card

Applying for this card will securely direct you to the issuer's website.

Top Features: Reports to all three credit bureaus, perfect credit not required for approval

Featured Good Credit Card
Petal® Visa® Credit Card
EDITOR RATING
Featured Good Credit Card
Petal® Visa® Credit Card

Applying for this card will securely direct you to the issuer's website.

Top Features: No fees whatsoever. No late fee, international fee, annual fee, or any-other-kind-of-fee, fee


bill-hardekopf

About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.