Millions of Americans have made significant progress in the last few months when it comes to getting their bills paid on time and taking steps to reduce debt, and that new trend may prompt lenders to further expand efforts to issue more cards in the new year.
Declining rates of credit card default and increased spending may be enough to entice the nation's top credit card lenders to continue their efforts to broaden lending standards so that more Americans have access new accounts, according to a report from The Associated Press. The credit monitoring bureau TransUnion recently reported that these efforts were already under way earlier this year, as more than a quarter million new cards were issued to those with moderate credit ratings who would not have had access to these accounts just a year prior.
Lenders significantly tightened lending restrictions during and immediately following the recession as default rates climbed to all-time highs as a result of extreme economic difficulties faced by most consumers. However, those rates have since fallen to near-record lows in the past year.