Banks Are Putting Lower Limits on New Credit Cards
- Total credit on new accounts drops 8.3%, TransUnion says
- Firms undergo ‘an evaluation of their lending standards’
Photographer: Aaron M. Sprecher/Bloomberg
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U.S. credit-card lenders are beginning to pull back on the business even as consumers keep up with their bills during the coronavirus pandemic.
Total credit on new accounts slumped 8.3% in the second quarter from a year earlier, to $78 billion, the first decline in more than two years, according to data compiled by credit-reporting company TransUnion. The average credit line issued for new accounts fell 9% to $5,257, with declines across all tiers of borrower riskiness, the figures show.