During the national recession, many consumers across the country found it difficult to obtain a new credit card account, as lenders were wary of most Americans’ ability to successfully handle their credit card debt. That may no longer be the case.
A large and growing number of financial institutions say they have eased their credit card lending standards to allow more borrowers access to the accounts, according to the latest Senior Loan Officer Opinion Survey on Bank Lending Practices from the Federal Reserve Board. However, only a small number of financial institutions reported that they have seen an increase in the number of applicants during the first three months of the year.
In addition, the vast majority of these banks haven’t seen an appreciable increase in the creditworthiness of consumers who are applying for new accounts, the report said. However, large banks were far more likely than smaller banks to approve less-qualified borrowers for a new credit card.
Many lenders have been looking for new ways to attract borrowers in an effort to drum up greater revenues since the end of the recession.