Discussion Paper
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.
https://doi.org/10.17016/2380-7172.3964
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https://www.federalreserve.gov/econres/notes/feds-notes/more-credit-more-debt-new-evidence-on-automated-credit-decisions-20260116.html
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Bibliographic Information
Provider: Board of Governors of the Federal Reserve System (U.S.)
Part of Series: FEDS Notes
Publication Date: 2026-01-16
Number: 2026-01-16-1