Banks Make It Easier To Get A Credit Card
Almost 30 million credit cards were issued to people with credit scores of 660 and below in 2021, a signal that the US economy (and Americans’ finances) is strong, according to DCA member and credit reporting firm TransUnion. About 33% of banks reported easing credit standards during the fourth quarter of last year, compared with 4% during the same time period the previous year.
DCA Insight:
In early 2020 lenders fearing missed payments in the economic upheaval of the pandemic tightened loan approval standards. Riskier borrowers were locked out of credit market. But, stimulus payments and expanded unemployment benefits helped to lower balances—and limit payment defaults.