BUSINESSWTOP DC
Banks Are Approving More Credit Cards. Is That Good News?
Banks are approving more credit cards, with credit card dollar originations rising 9.6% year-over-year in Q4 2025 and median credit limits increasing by 4%. Experts suggest this trend is driven by high annual percentage rates (APRs) and advancements in underwriting technology, allowing banks to profit from higher-risk borrowers. However, carrying balances remains costly due to historically high APRs, raising concerns about consumer debt risks.
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