Banks May Be Tightening Standards for Credit Card Applications

Banks May Be Tightening Standards for Credit Card Applications

November 6, 2019         Written By John H. Oldshue

According to the latest Senior Loan Officer Opinion Survey from The Federal Reserve, banks tightened their lending standards for credit cards in the third quarter 2019.

Comparing the thrid quarter to the beginning of the year, respondents from 76 domestic banks said they “were less likely to approve credit card…applications” for applicants with FICO scores between 620 and 680. In addition, banks responded that they were less likely to approve applicants with 620 FICO scores.

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However, banks reported no change in credit card approval standards for applicants with FICO scores of 720

When the banks were asked why they had tightened their protocols, the most cited reasons were: uncertainty about the future economy, a reduced desire to take on risk, and concerns about borrowers’ abilities to make consistent payments.

The information contained within this article was accurate as of November 6, 2019. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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About John H. Oldshue

John Oldshue is the creator of LowCards.com. He worked for over 15 years in television and won an Emmy award for his reporting. He covers credit card rate issues for LowCards.com.