Tighter Credit Standards

The Federal Reserve announced that its latest quarterly survey of bank lending practices found high numbers of banks reporting tighter credit standards across a broad range of loan products.

Specifically relating to credit cards… a large number of banks reported they were tightening standards for consumer loans, with nearly 60 percent of banks responding stating they had tightened standards on credit card debt.

These tightened standards include:

– 50% raised minimum required credit scores

– 20% reduced credit limits to prime borrowers

– 60% reduced credit limits to nonprime borrowers

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