Lender Behavior Is More Cyclical Than It Appears

Lenders are often described as passive suppliers of credit, mechanically responding to demand. In reality, lender behavior tends to follow cycles determined by risk appetite, internal priorities, and market conditions.

During periods of calm, credit programs quietly expand. Credit becomes more accessible, terms soften, and flexibility increases. When conditions tighten or uncertainty rises, those same programs quietly contract. Limits are adjusted, recalls increase, and access narrows.

These changes are rarely accompanied by any announcements. They are gradual, internal, and uneven, but they shape lending conditions long before any public signals appear.