Lenders look to lure consumers with lax standards

Banks are loosening standards to qualify for credit cards and personal loans — and it’s not because they’re feeling generous.

After tightening credit during the onset of the pandemic, a deluge of defaults that banks had been bracing for never materialized. Instead, consumers hunkered down at home and used a tide of stimulus checks and generous unemployment benefits to pay down their credit card debt. With loan demand waning, banks are looking to jumpstart business again, offering more attractive credit card and loan options. Banks also are allowing clients to transfer credit card debt at zero percent interest and are even eliminating the need for a credit score.