Banks Are Handing Out Beefed-Up Credit Lines No One Asked For

The video discusses the proactive credit line increase (PCLI), where banks raise credit limits for customers, often without their consent. This practice is common among near prime customers, who have limited credit histories. In 2018, US issuers increased credit lines for about 4% of cards each quarter, a rate double that of post-financial crisis years. This strategy has been profitable for banks, generating significant revenue from credit card interest and fees. However, analysts warn that this approach is risky, as increased debt could harm both cardholders and banks during economic downturns.

Which banks are mentioned as part of the strategy for additional growth at card issuers?

What do analysts say about the risks associated with increasing credit limits?