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.
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.
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