Banks Increasing Credit Card Limits on Customers

Some banks have recently started automatically increasing credit card limits for customers; the credit card companies hope that doing so will increase their profits; Capital One is one bank that previously didn’t increase limits automatically but began doing so in 2018; some warn that this isn’t a good practice while the banks provide the counter argument that it is good customer service and that they raise limits carefully; data shows that outstanding card borrowing has surpassed what we saw before the financial crisis; at the end of September it totaled $880 billion according to New York Fed’s consumer credit panel; this not surprisingly has led to more profits at the biggest banks like Capital One, JPMorgan and Citigroup. American Banker

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