You know what is going on. You guys welcome back to another video, so we got a lot of new news coming in. So one of the things I want to talk about in today's video was actually how things may be changing in terms of getting accepted for new credit cards and what you guys need to know right now. So I made a video about two days ago talking about applying for a new credit card during the recession, my predictions and exactly what I believe is gon na happen for anyone trying to get a credit card during this time.

Now. My prediction originally was that it's a lot easier to get accepted for new credit cards, and this is still true among certain credit cards like no annual fee intro or balance transfer credit cards meant for subprime consumers, but when we're talking about more higher tier luxury cards, This is a whole nother story that I wanted to cover in today's video now, dr. of credit just came out with an article talking about how credit card issuers are pulling out of the affiliate program. Now, for anyone who doesn't know, the affiliate program is one of the best ways that credit card issuers are able to get a lot of their conversions from blogs, from channels like this and from other publishers that do work with them.

Now one of my justifications earlier in the video on why they would actually be accepting more new applicants right now is because of how much they're spending on marketing budgets. This is clearly an indication that they are actually pulling out of the marketing budget, and this is actually gon na change. My prediction that I made on my video two days ago so right now, it's clear to say that card issuers are cutting back on expenses, that they're exhausting one of the easiest ways to do that for any business or for any bank or any big corporation. It's always gon na start with their marketing budget.

If you cut out your marketing budget, that is money that you don't have to spend. If you already have organic sales coming in, if you already have a established brand name, then most of the time cutting off your marketing budget is one of the first things you can exhaust. Now there are other expenses that other businesses can really get out, and this is really gon na, be things like laying people off or doing a furlough we're seeing big hotels. But when we're talking about credit issuers and banks, it's a little bit more of a different story and here's where it affects us now, like I mentioned, if you are going for a beginner card, which means a card that doesn't require a high credit score, I do Believe chances of getting approved for those cards are still gon na maintain.

But when we're talking about other cards like business credit cards and we're talking about higher to your luxury cards, travel cards, any co-branded card. So when we're talking about applying for a credit card and we're filling out that information giving them our income where we live and and any current information based off our credit score, the algorithm uses called an underwriting place by other people, and this is really the minimum Requirement that it will let in for people, sometimes people may not meet that minimum requirement threshold on getting accepted for a new credit card. Whenever that happens, that's when you guys will see that pending in review or a human needs to go through it or need to go through a next step in the algorithm to basically approve someone for a credit card. Now, one of the things that we did not discuss in my last video was the rising unemployment rate, which is actually expected to be a lot more than people assume, and I'm already seeing this within the comments of my youtube channel and throughout social media right now.

As well, most people are getting laid off, some people are actually unemployed and I know a lot of people in my life that are being affected by this as well. This is a huge thing, and these are things that banks also take into consideration. Credit issuers are going to directly tighten their ropes on more people getting in for these credit cards. This is gon na happen over time.

I think once we get more data, more statistics, especially from the feds, but right now during this time, although it may be easier to get accepted for certain credit cards, this is gon na get tightened up very soon. So for anyone who has a credit score that is really on the line. Maybe it's like right on the line from like average to good or good to excellent, if you're right on the line for a certain credit card - and you don't have a full-on excellent credit score chances, are, you may actually get denied now at this moment, I do Believe that banks just don't feel good about accepting new applicants, seeing that they're pulling out a lot of their marketing budgets, seeing that they may cut out other expenses moving in the future and also us all, knowing how high the unemployment rate may be when we're talking About things on a global scale, this is really gon na, be something that matches, in my opinion, things like the 2008 financial crisis or even the Great Depression. I think we just have not seen the peak of this, yet we've never really had a pandemic.

These are things that are happening for the first time in history, but I don't want you guys to be scared. I want you guys to actually have a logical blueprint on what you guys should do moving forward if you're looking to get a credit card right now to take advantage of balance, transfers and no intro APR periods. I personally, don't believe that's gon na have a significant impact on that market, but, like I mentioned on other higher-tier cards and other business credit cards, I do believe that there are gon na tighten the ropes a lot more on it now. Knowing this, this may actually change the strategy quite a bit for certain people.

I know people who would be holding off right now on getting new cards until after this dies down, or maybe when tax season approaches. So they can get the points on that welcome bonus. I do believe if you're looking to get a business card or a higher tier luxury card, or if you had any other card that is not a subprime card that has very low credit score requirements to get into. I would actually consider applying for that very soon.

If you have an excellent credit score at the moment, you know how much money is still going out. You know how much you spent on groceries, how much you have to pay for your bills. Anyways, and you know you can meet that minimum spend requirement. I do believe that it just makes sense to go for it now before they even make it harder to get more cards.

So the direct argument that I would have in my head is well credit issuers. Wouldn't they want more people to have more cards. You get paid the annual fee rate. People use your card to get the interchange credit cards, our money for banks, wouldn't they want more people getting accepted in a normal answer.

Yes, with with everything happening in the economy, right now with everyone staying home right now, the natural response is actually no. There is just too much uncertainty right now within these banks, for them to really feel just okay with letting people out these huge credit limit cards and these higher to your cards that people may not be taking advantage of or using at all for this month. We're really going to be talking a lot about risk, tolerance and basically, that line between consumers and banks. That's always just fluctuating, and I feel, like you know, it's a good relationship because most parties can win in this situation.

But right now we are in such a unique situation where even restaurants, small businesses, they are expecting to go out of business. After all, this is over just because money is not circulating right now. Money is not circulating right now. Everything is on pause, so I really want you guys to take that into consideration, especially with any original credit card blueprint or outline that you may have had originally so.

For me, I was originally waiting on getting my chase ink business cards because I felt like there was no rush at this point. I'm gon na actually get some my cards a little bit quicker than I would anyways just because I think we have not hit the peak of whatever's going on yet now I don't want you guys to be scared. I want. I don't want you guys to leave this video thing at all man.

Things are going like it's crazy. Like don't worry about that, you guys really. You need to have just a logical answer towards the opinions and the perspectives that someone gets. In my opinion, my perspective, just bunker down just be good.

If you have higher to your cards, consider canceling them consider the annual fee that may come up, because, if you're someone who has lost their income and you're just sitting right now - and you don't know what to do, I really would consider canceling some of your higher To your annual fee cards, especially if they are not like your most recent no annual fee cards, this goes back to the idea of why I encourage people to start out with no annual fee cards as their first three to five cards. If you have no annual fee cards for your initial cards, these build up the average age of accounts on your credit report. This means that your credit score will be consistent, regardless of how many counts you close that you apply for recently. So, that's why you want to work up the tiers.

It always makes sense. If you go to your highest here, you have a very high annual free card like the Chase, Sapphire Reserve or the American Express Platinum Card, and you want to cancel it you're not going to see a huge hit but say those were some of your second or Third cards and you're just like okay, I don't know what to do anymore. I can't afford the payment on this. I can't afford the annual fee.

I need to close it if you close that you may see a hit on your account. I feel like if you are in a dire time right now hold off for just a little bit, because there is news right now with cards like the Chase Sapphire Reserve, where they are actually refunding a $ 100 statement. Credit for anyone who had that annual fee bumped up to five hundred and fifty dollars. This is really just a way for banks to say: okay, look, we know what's going on right now, we know you guys are holding some of our higher to your cards, even though we're already losing money with this.

We want you guys to still have this car justify this card or hold on to it for just a bit longer so giving out a hundred bucks to that many people who hold a certain card. That's a lot of money for banks to be giving out. People often forget this: we know that banks have a lot of money, but still giving out a hundred bucks to that many people, that's something that really needs to go through the chain of command. In order for something like that to happen, guys a lot of crazy things happening, I'm actually gon na make a follow-up video talking about what you guys need to know in terms of taking advantage of some of the federal relief that we're gon na get from the Government, I just need to do a little bit more research on it.

There's a lot of things that I need to cover on this channel, so you guys are more prepared for this and what you guys need to know, but that is really the news for today. I'm gon na say: there's one more time before closing out a video, if you guys are on the fence about a certain credit card, if you're not sure, if you have the most prestigious excellent 850 credit score and you're really just hovering the line you may want To consider getting that card quickly or before this whole situation develops into something more where people are just not getting accepted at all, so guys that was my updated video on why you guys should consider applying for a new credit card during the recession right now, if You guys have any other questions. Let me know down below. Let me know your thoughts and predictions.

Everyone has different opinions on this and I really want to hear it down below. On my last video, we got a lot of really good feedback. A lot of good comments: some people think they won't be travelling for the next two to three years. Some people think like this is probably the craziest thing ever.

Some people think that we're you know this is all gon na be cured within the next two months and we're gon na be good. I want to hear your guys thoughts really really curious on what my audience thinks about all this, and, like always, you guys, if you enjoy this video, make sure you guys drop a like if you guys have not yet subscribed, make sure you guys do, and I Also have affiliate links down below for any of the cards that you guys may want to apply, for I don't know how long those those links will be there for honestly, just because of the word that we're getting from issuers and how much these banks are actually Pulling out, but if you guys do apply for a credit card and you do want to support the channel. That is a free, easy way for you guys to do that. There is no obligation for you guys to use any of those links at all.

But if you guys do use those links, I just want to say thank you guys so much for the support. It really does go a very long way and I will be making more content I'll, probably doing a YouTube live sometime this week as well, just going over some questions and answers, we might do something also a little bit more interesting on the channel. We might have a very, very special collaboration going on on a different platform. I don't know exactly how that's gon na work out yet, but when I do get more information on that, it's just gon na be an easy way for us to all chill and talk, and it's gon na be pretty pretty fun to just hang out in there.

So stay tuned for information like that I'll be posting more on my Instagram. So if you guys have not yet followed me on there, I'm pretty active on there. We did a live on my Instagram yesterday and I plan on doing more just in the coming months. Guys, I know a lot of things are just up in the air right now.

People just aren't exactly sure what's going on, but I want you guys all to know it's gon na be okay. We're gon na be good. We're gon na make it out of this. Although this may be a bumpy and a very, very rainy storm we will get through this, I will make sure that my audience does and we're gon na go through this together stay tuned for any other videos, and like always, I hope I see you guys.

The next one beast.