Credit Card Issuers To Lower Their FICO Requirements... - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Credit Card Issuers To Lower Their FICO Requirements In The New Year

Credit Card Issuers To Lower Their FICO Requirements In The New Year

Credit Card Issuers To Lower Their FICO Requirements In The New Year
The content is accurate at the time of publication and is subject to change.

With fewer and fewer Americans defaulting on their credit card obligations these days, creditors are very happy indeed. The significant decline in charge offs leads to lenders being able to extend more credit card offers to a wider cross-section of borrowers so consumers can anticipate a flurry of promotional material after the New Year begins.

In 2010, credit card defaults soared to a whopping 10.4% but have since dipped to half that figure. One analyst at Moody`s credit rating agency forecasts that, next year, charge-offs will drop to 4%. Throughout the past two years card issuers have competed fiercely amongst themselves to sign up only the most creditworthy consumers for new lines of credit while simultaneously shrinking the credit limits and terminating the accounts of lower credit score-bearing customers.

With their balance sheets all tidied up, credit card companies are on the hunt for new customers – specifically some of those same cardholders they were eager to get rid of during the height of the country-wide economic crisis.

According to the Associated Press, credit scoring agency TransUnion released data that revealed almost a quarter-million new credit card accounts were opened between June and September by “consumers who had had some trouble making payments in the past, as indicated by their moderate credit scores.”

Granting more people an opportunity to access credit via a credit card will definitely help out some financially struggling consumers, but an increased ability to borrow can often be problematic – particularly for individuals who may have gotten themselves into trouble with credit in the past.

However, much of the data being compiled by credit card companies indicates that the vast majority of consumers are opting to be responsible with their credit use. For example, Discover reported in their latest quarterly earnings announcement that the amount of customers paying off their debts in full each month as opposed to revolving a balance has increased.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

The New Air France KLM World Elite MasterCard

Posted: October 23, 2018

Air France-KLM and Bank of America have partnered up to roll out a new travel credit card. The Air France KLM World Elite MasterCard offers cardholders three miles for every dollar they spend when flying with Air France and KLM Royal Dutch ... Continue reading
Shopping Online Gets Safer with Mastercard

Posted: October 22, 2018

The digital era has made shopping easier, whether it's getting a cab, ordering lunch or booking a trip, and now Mastercard is making it safer with the rollout of Digital Commerce Solutions. Continue reading
American Express Making it Easier to Resolve Transaction Disputes

Posted: October 19, 2018

Have you ever noticed a strange charge on your credit card statement, and then called up to find out what it was, only to get frustrated by the lack of information available? If so you may well be happy to learn that American Express has ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!