BankLending News & Analysis

Credit Card Approval Tightens as 64% of U.S. Adults Plan Same or Higher Holiday Spend

Sixty-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.