More Credit, More Debt: New Evidence on Automated Credit Decisions
Abstract
Behind the scenes of every credit card lies an increasingly complex algorithmic infrastructure that determines who receives more credit and when, largely outside the inspection or knowledge of credit card users. Credit card issuers deploy sophisticated algorithms that continuously analyze consumer spending and borrowing behaviors, often increasing credit limits without consumers requesting such changes.
Fields of Study & Subjects
FinTech
Crowdfunding
Digital Finance
Financial Distress and Bankruptcy Prediction
Banking stability
regulation
efficiency
Publication details
- Journal / source
- FEDS Notes
- Issue
- 2026-01-16-1
- Publication date
- 1 January 2026