Credit Card Approval Tightens as 64% of U.S. Adults Plan Same or Higher Holiday Spend
Published on · Source: cnbc.com
AI Summary
Summarized by AI from the source belowSixty-four percent of U.S. adults expect to spend the same or more this holiday season compared to last year, according to PayPal's 2026 Holiday Shopping Survey. Credit cards remain a popular payment method to manage holiday expenses and earn rewards. However, approval has become more difficult in recent months.
A Federal Reserve Bank of New York survey from September reported that more Americans feel credit is harder to get than a year ago. Supporting this, an October Federal Reserve survey of banks showed that 6.0% of banks overall, and 10.5% of large banks specifically, have tightened standards for credit card approvals. This tightening may impact consumers trying to get new rewards cards for the holidays.
Before applying for a credit card, experts recommend planning holiday budgets carefully and aiming to pay off balances monthly to avoid interest charges. Budgeting tools such as Quicken Simplifi offer features to track spending, savings, and payments, helping consumers manage finances during high-spending periods like the holidays. Timely budgeting and awareness of stricter credit standards can help shoppers prepare for more challenging card approval conditions this season.
Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.
Our take
Opinion from the Newsstocks AI desk, not investment adviceWe think rising difficulty in getting credit cards reflects banks' caution amid economic uncertainty. This may lead consumers to more carefully plan budgets and credit use. If lending standards ease, card availability could improve. For now, applicants face stricter approvals, influencing holiday spending strategies.
Key numbers
- Banks tightening credit card approval standards
- 6.0%
- Large banks tightening credit card approval standards
- 10.5%
What could help
- Continued use of rewards cards can benefit holiday shoppers with cashback or points.
What could hurt
- Tighter credit card approval standards by banks, especially large banks, could limit access to credit.
The background
Credit card approval standards impact consumers' ability to borrow and manage spending. Tighter lending increases difficulty in obtaining new credit cards.
Questions readers ask
Why is credit harder to get according to the article?
A Federal Reserve survey reports that 6.0% of banks and 10.5% of large banks have tightened credit card approval standards in recent months.
What advice does the article give before applying for a new credit card?
The article suggests establishing a holiday budget and paying off card balances in full monthly to avoid interest charges before applying.
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