More evidence that credit card companies are lending to riskier customers

Some credit card companies have loosened their standards for lending.

That’s according to Moody’s Investors Service, which published a report Thursday about credit card charge-offs, the term for credit-card debt that is so delinquent, the bank or institution that lent the money writes it off as being impossible to collect. At that point, the bank or other institution may still try to collect on the debt.

Delinquent debts can harm consumers, from the interest they pay on that debt to their credit score. And a debt that falls into collections, even if it has been paid off, stays on a credit report for seven years, which makes it difficult to get a loan and may even be used by prospective employers to find out whether an applicant is responsible.

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