April 1, 2020
Hope everyone is safe & following Social Distance Guideline .I work in 🏦 Bank Collections & have gathered this information to help individuals regarding payment Deferral on credit cards and other Bank Products ( like Mtg ,Car loan ,Personal loans ) . Feel free to ask any question or contact your Bank directly .
Bank of Canada lowered its prime rate (for the third time in March), and Canada’s big banks have rallied together to offer mortgage payment deferrals for people facing financial hardship. It’s all in response to COVID-19 and the unprecedented impact it’s having on the economy and our wallets.
But what about credit cards, the type of credit most Canadians rely on everyday? Here’s how some of Canada’s banks are helping those in a cash crunch.
. Some banks are offering temporary credit card relief in the form of payment deferrals – letting you postpone monthly minimum payments.
Credit card deferrals can offer some much-needed short-term support if finances are tight – but it’s not debt relief. Interest will still accrue during the deferral period and owed once it ends.
Banks aren’t explicitly saying who’s eligible for payment deferrals, but that people will be evaluated on a case-by-case basis.
Your credit score shouldn’t be impacted by a deferral.
If deferral isn’t an option, most banks are offering at least some form of support like increasing credit limits or arranging new loans to improve cash flow.
Banks are currently inundated with calls and prioritizing people who have payments looming within the next few days, so tap your online banking app, schedule appointments in advance whenever possible, and be prepared to be put on hold over the phone for a while.
On March 26, reports confirm the federal government is asking credit card companies to lower interest rates for those facing financial hardships due to COVID-19. News is still developing.
The situation surrounding the COVID-19 pandemic is unfolding rapidly and banking policies may change. Contact your card issuer for details.
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Canada Emergency Response Benefit
If you’re struggling to keep up with credit card bills because your hours were reduced or you lost your job due to financial stress caused by COVID-19, you’ll want to read up on the Canada Emergency Response Benefit (CERB). CERB is a form of unemployment insurance that can offer you up to $2,000 per month for four months if you’re self-employed, under contract, or a full-time employee who’s temporarily out of work due to COVID-19.