Latest news with #NewYorkFed
CBS News
5 hours ago
- Business
- CBS News
When can your credit card issuer lower your credit limit?
We may receive commissions from some links to products on this page. Promotions are subject to availability and retailer terms. Your credit card issuer can lower your credit limit without warning — and there are a few reasons, in particular, that they'll do this. bernie_moto/Getty Images In today's unusual economy, lenders are keeping a closer eye on risk. While inflation is cooling and interest rates may be on the way down, consumers are still carrying historically high levels of credit card debt — more than $1.18 trillion currently, according to the New York Fed. Credit card delinquencies and defaults are also rising. And for credit card issuers, that means tightening the reins a bit. One way they do that? Reducing customers' credit limits. And even if you've had your card for years, paid on time and rarely carried a balance, your issuer could still slash your available credit with little or no notice. It's a frustrating move that can dent your credit score and limit your financial flexibility. But it's also perfectly legal in most cases. So what causes a credit card issuer to lower your credit limit? And what can you do if it happens to you? Here's what you need to know. Find out how to get help with your credit card debt today. When can your credit card issuer lower your credit limit? Credit card issuers can lower your credit limit at almost any time — and for a range of reasons. While they're legally required to notify you after the fact, they don't have to ask for your permission beforehand. Here are some of the most common reasons they might take action: You haven't used the card in a while. If your card has been sitting idle for months, the credit card issuer may decide it's a risk to keep the full credit line available. This is especially true during periods of economic uncertainty when banks want to minimize exposure to unused credit that could suddenly be tapped. Chat with a debt relief expert about your high-rate debt now. Your credit score dropped. Issuers regularly check your credit reports via a practice known as a soft pull. If it shows that your score has dropped due to late payments, high credit utilization or a new collection account, that could raise a red flag and prompt them to lower your credit limit as a precaution. You've recently had high balances or missed payments. If you're carrying a larger balance than usual, or have started missing payments, it may signal financial strain. Issuers might respond by reducing your limit to reduce potential future losses. There's been a change in your income or financial situation. If you recently reported a lower income on a credit line increase request or updated your financial info through the bank, that could factor into their risk assessment and trigger a limit reduction. The issuer is reevaluating risk across all cardholders Sometimes it's not about you at all. Issuers occasionally conduct broad reviews of their entire customer base to manage risk or adjust to new economic realities. If that happens, even customers in good standing could see their limits cut. What to do if your credit card issuer lowers your credit limit If you've been hit with a credit limit decrease, don't panic, but do act quickly. Here's how to protect your finances and your credit score: Call and ask for an explanation. Start by contacting your issuer to find out why your limit was reduced. If it was due to inactivity, using the card regularly (even for small purchases) might help you restore your previous limit. If the reason was tied to your credit, it's worth checking your credit reports to confirm what the issuer saw. Request a credit limit increase. In some cases, you can ask for your original limit to be reinstated, especially if you've improved your credit or have a strong payment history. Some issuers may require updated income information or run a hard credit check. Review your overall credit utilization. A lower limit can cause your credit utilization ratio to spike, especially if you carry balances. To minimize damage to your credit score, consider paying down other card balances or spreading purchases across multiple cards (if available). Monitor your credit reports. If the issuer cited your credit profile as a reason for the limit drop, review your reports. Look for errors, late payments or new inquiries that may have triggered the change and dispute any inaccuracies. Consider switching to another card. If the issuer won't budge and you feel you've been unfairly treated, it may be time to move on. Compare other credit card offers, especially those with better limits or perks, and consider applying once your credit stabilizes. The bottom line A reduced credit limit can feel like a personal slight, but more often, it's just a reflection of a lender trying to manage risk in an unpredictable economy. Unfortunately, even responsible cardholders aren't immune. To avoid this type of issue, it can help to keep tabs on your credit, use your cards periodically and maintain good financial habits. If your limit is reduced, don't be afraid to advocate for yourself, but also be prepared to adjust your credit strategy accordingly. In many cases, you can bounce back without long-term damage.
Bloomberg
7 hours ago
- Business
- Bloomberg
NY Fed Says Net Income Could Be Negative Through Most of 2025
Total net income from the Federal Reserve's System Open Market Account could remain negative in 2025 before returning to positive levels as early as next year, according to new projections from the New York Fed. 'In this exercise, SOMA net income remains negative through most of 2025 because the interest expenses on reserve balances, certain other deposits' and reverse repurchase agreements 'are higher than the income earned,' the New York Fed said in a report released Tuesday.
Yahoo
a day ago
- Business
- Yahoo
Employment advice & pathfinding tips for Class of 2025 grads
Millions of American college students are graduating from their academic institutions and are looking to enter the US workforce. College grads, aged 22 to 27, experienced higher unemployment than the US national rate in the first quarter of 2025. Yahoo Finance senior columnist Kerry Hannon comes on Wealth to offer employment advice to the class of 2025. To watch more expert insights and analysis on the latest market action, check out more Wealth here. It is graduation season with millions of American students entering into what could be a challenging job market. According to the New York Fed, in the first quarter, new grads had an unemployment rate of nearly 6% compared to just 4% for all workers. Here with some advice for the class of 2025. We've got Yahoo Finance senior columnist Kerry Hannon. Kerry, what do you recommend to new grads who are looking for work right now? Oh, Brad, I absolutely love writing this column. So the first thing I would say is, you know, when you're looking for jobs, think it's really competitive this year, more so than than other years. So, don't be discouraged. I mean, I really encourage people to cast a wide net. Look at all kinds of jobs that might suit your skills and your interests. Don't get locked into one lane because this is the time to really look cast that wide net to what that first job might be, and you want one that's going to build skills and that you're curious about and and that sort of thing. So, don't get so stuck on one thing. Second, you know, build your network. Never forget that all those people you worked with in your internships and your classmates and your colleagues going forward. This is your secret sauce of power as you go through your career. So, stay in touch with people. Develop those relationships. This is your network for life. So, keep building it, send notes, send cards, get together for coffee whenever possible. That's important. And invest in yourself. And what I mean by that is always be thinking about what skills can I keep adding. Yeah, I graduated from college, but keep adding skills, keep raising your hand for workplace development programs, or you know, any sort of activity you can do that sort of really shines up your skills, adding a certificate. According to Deloitte, over half of Gen Z says that they value meaningful work. How can young workers find meaning in perhaps an entry-level position or just getting started? Yeah, you know, it's so true. We all do better work when we love what we're doing, right? So, the first thing I say is dream a little bit. When you start looking at at potential jobs, think about the things that really that you value. Right from the get-go, what do you align with? What companies, their missions, their products, the non-profit, whatever it is, what speaks to you and think about how that might work for you. Even hobbies that you have, if you love to sail or something, think about the skills associated with that. And those are things that give you clues to what kind of job might really turn you on. So, that's dreaming a little bit. Number two, write a mission statement. Never too early to write that mission statement about what it is you want to do. And this changes over the course of your career, but it's 25 words or less, it's active language, you want to inspire this, you want to, you know, develop this. Whatever it is is what's going to be true to you. That sets your guard rail for the kind of job you're looking for. And in this category too, I say give back, you know. Really think about getting out of your head and into the world. If you're frustrated by the job search, if you're feeling discouraged, go volunteer, go do something for somebody else. It will make you feel better and you never know who you might meet at that non-profit that can help you make a connection to the next job. Uh, hopefully, you're using skills so that you're building your own skill set. And you might even find a job right there. You never know. But I do think it's important to kind of, you know, get out of back away from that computer and get out into the world, and that will really ignite your job search. We've got about 30 seconds left here. Financial considerations, what should new grads be thinking about? Yeah, take control of your financial life. Do a budget. Get serious. What are you how are you spending your money? Take a look at that. Set definitely set aside enough money in your retirement if your employer offers you one to at least match what they're going to match for you, you know, a certain percentage of your salary. Automate, automate, automate. Uh, make sure these retirement savings and think of it as retiring, you know, saving for life. You're not saving for retirement necessarily, that seems too far away. You know, and I think it's important to build your emergency account, you know, start small, but do that automatically once again. And finally, you know, invest in doing things and traveling and exploring the world. This is going to make you set a little travel budget aside because this makes you a richer person, a more curious person, and someone I think is a better potential hire for many employers. They'll see that spark in you of your curiosity about the world. Kerry, thanks so much. Appreciate it. Thanks. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Newsweek
a day ago
- Business
- Newsweek
List of Popular College Majors With High Unemployment Rates
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Your college major can play a significant role in the type of job you'll find after graduation and the amount of income you can expect in a salary. But surprisingly, some of the most popular majors have high unemployment rates, according to data from the Federal Reserve Bank of New York. Majors such as computer science and physics had some of the highest unemployment rates, at 6.1 and 7.8 percent, respectively, despite being considered relatively stable STEM fields. "A graduate's degree doesn't guarantee job security, and in some cases, it can make you overqualified and underemployed, especially when debt is involved," Kevin Thompson, the CEO of 9i Capital Group and the host of the 9Innings podcast, told Newsweek. Why It Matters The national unemployment rate was 4.2 percent in April, according to the U.S. Bureau of Labor Statistics. Choosing certain college majors could significantly increase your chances of going without a job, according to New York Fed data. While some fields may have historically been viewed as more stable and likely to lead to a lucrative career, the new data could shift the way students choose their majors now and in the future. What To Know Computer science ranked seventh among undergraduate majors with the highest unemployment at 6.1 percent, according to the New York Fed. However, it also ranked as number one by the Princeton Review for college majors, showing the tech industry may not be living up to graduates' expectations. According to CollegeFactual, it was the 12th most popular major in the 2021-2022 school year. The full list of college majors with the highest unemployment rates was as follows: Anthropology, 9.4 percent Physics, 7.8 percent Computer Engineering, 7.5 percent Commercial Art and Graphic Design, 7.2 percent Fine Arts, 7 percent Sociology, 6.7 percent Computer Science, 6.1 percent Chemistry, 6.1 percent Information Systems and Management, 5.6 percent Public Policy and Law, 5.5 percent Graduating college students gather in Harvard Yard on May 28, 2025, in Cambridge, Massachusetts. Graduating college students gather in Harvard Yard on May 28, 2025, in Cambridge, of these areas of study were far less desirable than computer science, with physics ranking as the 68th most popular major, according to CollegeFactual. Only 9,310 students obtain a bachelor's degree in anthropology each year, according to Niche. And under 7,000 earn their degree in graphic design, although many others enter the field with a slightly different degree title. Fine arts was ranked number 66 in popularity by CollegeFactual, with sociology, chemistry, information systems, and public policy coming in at numbers 25, 51, 314, and 113, respectively. Majors such as nutrition sciences, construction services, and civil engineering had some of the lowest unemployment rates, hovering between 1 percent and as low as 0.4 percent. What People Are Saying Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "The higher unemployment rates in computer science and computer engineering were unexpected, especially considering the direction of our economy. With AI and chip manufacturing dominating headlines, you'd think these roles would be in high demand. But maybe that's the issue—are these professionals building the very tools that will replace them?" Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "It will undoubtedly shock many to see majors like computer engineering and computer science with unemployment rates as high as their fine arts counterparts, but there are plenty of reasons. These majors were rightfully promoted over the last two decades to many students, as demand for employees in these fields far outweighed the supply of skilled workers available." "Now, unfortunately, these same areas are dealing with oversaturation, more competition when applying for roles, and an industry that has seen layoffs over the last years as many businesses attempt to get more efficient." What Happens Next The unemployment rate for recent college graduates increased to 5.8 percent in March from 4.6 percent the previous year, according to the New York Fed. Moving forward, there could be a continued shift away from both the arts and hard sciences toward trade-focused or more generalized degrees," Thompson said. "Government funding for science and research projects has slowed, and that impacts job creation in these fields. It's possible we're seeing the effects of that play out in the data," he said.
Yahoo
3 days ago
- Business
- Yahoo
"Learn to Code" Backfires Spectacularly as Comp-Sci Majors Suddenly Have Sky-High Unemployment
It looks like the "learn to code" push is backfiring spectacularly for those who bought in. As Newsweek reports, recent college graduates who majored in computer science are facing high unemployment rates alongside the increasing probability of being laid off or replaced by artificial intelligence if and when they do get hired. In its latest labor market report, the New York Federal Reserve found that recent CS grads are dealing with a whopping 6.1 precent unemployment rate. Those who majored in computer engineering — which is similar, if not more specialized — are faring even worse, with 7.5 percent of recent graduates remaining jobless. Comparatively, the New York Fed found, per 2023 Census data and employment statistics, that recent grads overall have only a 5.8 percent unemployment rate. While folks who majored in fields like anthropology and physics fared even worse, with unemployment rates of 9.4 and 7.8 percent respectively, computer engineering had the third-highest rate of unemployment on the New York Fed's rankings, while computer science had the seventh — a precipitous fall from grace for a major once considered an iron-clad ticket to high earnings and job security. (Those numbers, notably, are worse even than the outcomes for journalism grads. Despite being accurately advised that their chosen field is dying, recent grads who majored in journalism are only experiencing unemployment at a rate of 4.4 percent, per the NYFR's analysis.) Bryan Driscoll, an HR and business consultant, told the magazine that the pipe dream "sold" to CS majors doesn't match up to the reality of the current job market that still "rewards pedigree over potential." "We've overproduced degrees without addressing how exploitative and gatekept the tech hiring pipeline has become," Driscoll said. "Entry-level roles are vanishing, unpaid internships are still rampant, and companies are offshoring or automating the very jobs these grads trained for." By automating, of course, the consultant means being replaced with AI as part of the second apparent phase of the tech industry's latest crash following major layoffs in recent years. Michael Ryan, another of Newsweek's experts, suggested that recent CS grads are, somehow, doing a crappier job than their AI competition. "Every kid with a laptop thinks they're the next Zuckerberg," the finance guru behind told the magazine, "but most can't debug their way out of a paper bag." "We created a gold rush mentality around coding right as the gold ran out," Ryan continued, referencing the "learn to code" craze of the late 2010s and early 2020s. "Companies are cutting engineering budgets by 40 percent while CS enrollment hits record highs. It's basic economics. Flood the market, crater the wages." Where do they go from here? Aside from going back to school for something more lucrative, they could take the suggestion from one laid-off tech veteran, who last year told SFGATE that she had started selling her blood plasma to make ends meet. More on post-grad struggles: Berkeley Coding Professor Says Even Grads With 4.0 GPA Can't Find Jobs
