Negative consequences from requesting COVID assistance from Discover, Amex, Wells Fargo?

[CreditobsessedinFL]

Thank you for your candor, @MusicLovah7,  I had been PIF like I always do, yet I am hesitant to do that this month with all the uncertainty. I also don't want deplete my Biz cash reserves and my situation differs since mine are BIZ Amex cards and thus hidden trade lines, yet I don't know what's the best course of action, but I do NOT want to poke the Amex Bear either by carrying a balance all of a sudden.

[sourpuss29]

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@tussking wrote:

Sourpuss29 - I'm just curious why you would feel gross about asking for assistance in this global pandemic? 

Example - I plan for the future. Yes, I can pay every bill I have for the next few months. Why wouldn't I ask for an extra month or two?

What if this pandemic goes on for six months? I am already less one income (spouse - her office closed) no pay. I don't feel gross asking for assistance. I am being smart, proactive and responsible. Me asking my bank to put two loan payments in the rear hurts who? My asking my car leasing company to extend my lease two payments so I don't have car payments in the next two months hurts who? Plan for the possibility of many months of affected income, not just today...JUST MY OPINION.

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You didn't get what I was saying.

Since you have been DIRECTLY impacted by COVID-19 due to your wife losing her job, you have EVERY right to request assistance during this time.  My post pertained STRICTLY to people who have not lost their source of income due to the virus and are using the help being given by creditors as a way to get over...which is gross to ME. Yes...no one knows what the future holds; however, let's not pretend that uncertainty is what is motivating some people to do what they're doing in the current economic climate.

[steelers1]

If ANY creditor takes AA against you for asking for help during a crisis that is way out of your control. They are seriously not worth doing business with.

[Watchmann]

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@steelers1 wrote:

If ANY creditor takes AA against you for asking for help during a crisis that is way out of your control. They are seriously not worth doing business with.

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Businesses exist to make money, to think they won't take your request for some sort of modification of a legal agreement between you and  them in future considerations is unrealistic.  If you need help ask for it, but understand it will likely have a future unknown effect.  At the least it indicates your level of liquid assets to weather an upset like this,  data not taken into account in a general FICO score.  It tells creditors something they normally don't know.

[Anonymous]

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@Watchmann wrote:

Businesses exist to make money, to think they won't take your request for some sort of modification of a legal agreement between them and you in future considerations is unrealistic ... 

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Right. Lending is founded on risk & information. Borrowers are a risk. Information about the borrowers (influencing degree of risk) is fluid. To think lenders would ignore, or not utilize, new information is naive.

Moreso, it could be argued to NOT make use of new credit information would be wrong. 

Please note: I am not advocating for the lenders here, nor wishing ill to anyone suffering economically. I'm merely stating an opinion on what appears obvious to me. Hopefully I'm wrong. 

[Anonymous]

You also have to remember that these assistance programs come with T&C of their own, which could be anything. I haven't read any of them because I don't have need for assistance ATM. And it's always too long to read the whole thing in one day.

It might look bad to some for them to use this data, and to possibly take AA because of it. But as others have pointed out they are Banks first and foremost, and will look out for their own best interest above anything else. As they always have. 

I prefer to avoid any of these assitance programs until I desperately need it.

[masscredit]

I came across this thread while searching to see what happens if someone requests COVID assistance from their credit card issuer. I received 2 months deferred payments from DCU for my auto loan. No problem with that. But when it comes to a credit card, would an issuer freeze the account or would the card holder be able to continue to use it like usual? Some in the thread have mentioned possibly seeing a CLD or the account frozen. It was also mentioned that it's more important to worry about things like food and housing. While this is true, it may not be good to risk the loss of available credit that might be needed in the future. A person can make the minimum payments to avoid being late.  If you were going to pay cash for something, use the card then use the cash to cover the minimum (and maybe more). That keeps the card current.

[Anonymous]

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@kdm31091 wrote:

Your financial well being and paying your bills are much more important than worrying about possible negative consequences from requesting assitance. It is what it is; if you need the help ask for it.

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This can come with unintended consequences, too. Makes a consumer wonder if the issue needs to be approached with reverse psychology. There seems to be a phenomenon, already once mentioned in this thread, indicating that lenders are preemptively SLASHING those lifelines when consumers do reach out and ask for help. (AmEx) 

Back in March, and I'm sure still today, when I called Chase for a CLI, they asked me if I was requesting a temporary CLI for COVID-related needs. While this was not what I was seeking (I was seeking a standard CLI) it does make me feel better that they'd proactively offer a greater line in response to a need, versus freezing cards or decreasing limits.