A pilot program is set to launch this year that will offer Americans who typically struggle to gain access to credit the chance to open credit cards. Whether Americans should get one of these cards isn’t clear-cut.
Comparatively, only 7.1 million households nationwide lack a bank account, according to 2020 data from the Federal Deposit Insurance Corp. That’s the lowest rate since the FDIC began tracking this data in 2009. “Expanding access to credit is always, always risky,” said Matt Schulz, chief industry analyst at LendingTree. “There will definitely be folks who get in over their heads with all the newfound credit.”
Better options may already exist Many companies have waded into the fray to offer credit cards to consumers with poor credit in recent years. “We’re seeing debit cards and buy now, pay later services — such as Affirm and Afterpay — taking market share from credit cards. I think that’s part of why credit card issuers are making an effort to attract new customers, including credit invisibles,” Rossman said.