Federal Reserve Survey Shows Banks Tightening Credit Card Lending Standards
Sunday, 19 May 2024, 18:00
Why banks are tightening credit card standards
The Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) indicates that some banks are tightening their lending standards for credit card loans and consumer loans in response to various trends and factors.
Three big trends affecting credit card applications
- 21% of banks have tightened standards for credit card applications: About 21% of banks overall and 32% of large banks have reported somewhat tighter approval standards in the past three months.
- 22% of banks are tightening credit limits: Bank executives have noted lower credit limits, impacting both new and existing credit card customers.
- 24% of banks are raising minimum required credit scores: An increasing number of banks are raising the minimum credit score needed to qualify for a credit card, potentially limiting access to credit.
Overall, these changes could lead to some applicants facing rejection for credit cards, but individuals with strong credit scores may still find it relatively easy to secure credit.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.