American Credit Scores That Got Pandemic Boost Are Sliding Again
- Synchrony closes accounts, curtails limits for some customers
- Credit-card charge-offs have risen rapidly across the industry
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A bevy of US consumers who saw their credit scores boosted by government stimulus and a pause on student-loan payments during the pandemic are now seeing those scores slide back into subprime territory, according to the country’s largest store-card issuer.
As a result, Synchrony Financial has begun closing inactive accounts and curtailing card limits for a small portion of accounts, Chief Financial Officer Brian Wenzel said in an interview. The Stamford, Connecticut-based firm hasn’t felt the need to tighten underwriting standards for new accounts, he added.