NEW YORK While the credit card companies have been competing to gain the attention of top tier borrowers for the past several months, many companies are looking to borrowers with lower credit scores to help increase their market shares.
TransUnion has reported that over the course of the past several months, more than 25 percent of all new cards went to borrowers who had a less than perfect credit history, or those with a score of 700 or less. Last year, just 23 percent of cards went to borrowers with credit scores like those. With the number of new accounts opened by borrowers with scores of 800 or more decreasing, credit card companies are taking an important step that is a must for the struggling economy.
Greg McBride, a senior analyst with Bankrate.com, said that if companies are going to grow, they have to begin working with risky borrowers again, and that seems to be the track many credit card companies are taking these days.