The cost of eggs might be down, but Americans are still putting a ton on plastic. 💳 If you’ve been shopping for a new credit card without any luck, it might not be your fault. 🧐
Banks are getting choosy AF these days. Let’s dig into some recent stats and demystify this thang. 😎
Here’s Five Fast Facts on banks and credit cards:
- 🤜 Tight Grip - According to the Wall Street Journal, banks have tightened the reins on credit-card approvals this year. Across four major lenders, total new credit card openings fell by 5% in Q2. That’s the first decline in over a year. New account openings at AMEX were down 6% from last year, but the average fee per card jumped from $101 to $117, thanks to premium cardholders.
- 📬 You’ve Not Mail - Not getting as much credit card junk mail? That’s because lenders are zeroing in on people with higher credit scores. Data from April showed that over 87% of all credit-card related mail consisted of pre-screened offers. In other words, they’re only mailing love notes to people who meet their requirements.
- 🎯 On Target - Now, credit card companies want to reel in folks with high credit scores…who also spend a lot. These consumers are a fairly low risk to banks and they tend to pay off their balances each month. Big spenders also generate big bucks for banks in the form of interchange fees from merchants.
- ✈️ Spendy Wendy - High spenders can also hedge against more risky customers with not-so-great habits. According to recent data at American Express, although airline ticket spending remained steady, spending on luxury seating and short-term rentals over $5K jumped by 9%.
- 😵 The Little Guy - While the rich are out splurging on bougie Airbnbs, credit card customers on the lower end are riding the struggle bus. Outstanding balances are on the rise along with defaults and interest rates. In July, the average credit card interest rate hit 24.35%.
🔥Bottom line: As banks get pickier, it pays to get financially smarter. The cleaner your credit score, the more options you’ll have. Having trouble climbing out of debt mountain? It could be your sneaky bad financial habits. Not sure what we mean? Get yourself over to this article and to find out if you’re guilty as charged.
Having trouble getting approved for a new credit card?
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