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A12 BUSINESS
Wednesday 7 september 2022
Millennial Money: Why you should

increase credit limits now

By MELISSA LAMBARENA of
NerdWallet
Relying on a credit limit in
a shaky economy is the
equivalent of expecting a
weak bridge to weather a
storm and carry you to sur-
vival.
It’s not uncommon for
credit card issuers to mini-
mize their risk by lowering
credit limits or closing ac-
counts when there’s po-
tential for economic dis-
tress. Credit card issuers
took these actions in the This Aug. 11, 2019 file photo shows Visa credit cards in New
Great Recession and early Orleans.
in the COVID-19 pandem- Associated Press
ic, according to a 2022
report by the Consumer Fi- many accounts owned by 2020 with active accounts
nancial Protection Bureau, cardholders, even those in good standing. A major
perhaps due to changes in with high credit scores, issuer closed several of his
credit profiles, internal ac- were closed due to inac- accounts, scrapping over
count performance met- tivity, according to a spe- $17,000 in available credit.
rics or shifts in the issuer’s cial issue brie f by the CFPB “It was one day of buying
risk management policies. that same year. Inactive something online and the
Even as an uncertain op- cards aren’t making the is- credit card was declined,”
tion, a credit limit is still a suer money in fees, so they Barnes says. “They said it
bridge worth preserving to pose more risk to the issuer was a risk, but I didn’t even
supplement or back up an during tough times. miss one single payment.”
emergency fund, especial- It’s worth keeping credit Previously, some lenders
ly before a potential reces- cards open and regularly didn’t provide cardholders
sion. There isn’t a foolproof charging planned pur- with reasons for credit limit
strategy to prevent an is- chases to give issuers one reductions.
suer from lowering credit less reason to touch your In May 2022, the CFPB’s
limits or closing accounts, account, but that might advisory opinion on the
but some actions may min- not be enough. Equal Credit Opportunity
imize the impact to your For Timothy Barnes, an Act affirmed that lenders
wallet and credit scores. auto mechanic based in must provide an “adverse
KEEP CREDIT CARDS OPEN Rocky Mount, North Caro- action notice” explaining
AND ACTIVE lina, it didn’t matter that he the reason for unfavorable
In March and June 2020, was still employed in late decisions. q

CVS to buy home health-care provider

Signify for $8 billion

DALLAS (AP) — Drugstore nify Health for $8 billion. nurses, a presence in every
operator CVS Health Corp. CVS said Signify has more state, and offers technol-
said Monday that it will buy than 10,000 employees ogy platforms. “This acqui-
home-health provider Sig- including physicians and sition will enhance our con-
nection to consumers in the
home and enables provid-
ers to better address pa-
tient needs as we execute
our vision to redefine the
health care experience,”
CVS CEO Karen Lynch said
in a statement announcing
the deal. The acquisition
would continue CVS’ effort
to grow from its pharmacy-
chain roots to other sec-
tors of the health industry.
A CVS Pharmacy is seen in Mount Lebanon, Pa., on Monday, In 2018, the Woonsocket,
May 3, 2021. On Monday, Sept. 5, 2022, drugstore operator CVS Rhode Island, company
Health Corp. said that it will buy home-health provider Signify purchased health insurer
Health for $8 billion. Aetna for $69 billion.q
Associated Press