News & Trending Banking News

Trump’s New Bank Order Could Make It Harder for Some Borrowers to Get Credit

This could mean tighter access to loans and accounts.

By Jordan Major , Edited by Andrea Basse

Updated June 5, 2026

Add Us On Google

Access to credit is something many Americans take for granted, whether it's opening a checking account, applying for a credit card, or getting approved for a mortgage. But a new executive order from Donald Trump could quietly change how banks decide who qualifies.

Framed as an effort to crack down on financial crime and illicit activity, the order asks banks to take a closer look at customer risk. For anyone trying to open a new bank account, that shift could make it harder to access basic financial services, even if they've previously had no issues borrowing or banking.

Get instant access to hundreds of discounts

Over 50? Join AARP today— because if you’re not a member you could be missing out on huge perks like discounts on travel, dining, and even prescriptions.

Get 25% off membership — just $15 for your first year with auto-renewal — and a free gift if you join today.

Become an AARP member now

What the executive order does

The executive order directs the Treasury Department to issue new guidance to financial institutions on identifying suspicious activity.

Banks are being asked to watch more closely for red flags such as payroll tax evasion, hidden account ownership, off-the-books wage payments, and potential labor trafficking. The order also calls for stronger "customer due diligence" rules, which could require banks to gather more information about their customers before approving accounts or loans.

In addition, regulators have been instructed to consider whether current rules under the Bank Secrecy Act should be tightened, giving banks more authority to request documentation when concerns arise.

Shopping for cheaper auto insurance? Enter your zip code here to get started.

Banks may tighten standards

While the order does not directly force banks to deny services, it changes how they assess risk.

The White House has specifically pointed to concerns that some borrowers could become unable to repay loans if their legal status changes, including the possibility of deportation. From a lender's perspective, that introduces uncertainty, and uncertainty often leads to stricter approval standards.

Even without a formal requirement, banks may respond by tightening their policies to avoid potential compliance issues or financial losses.

Who could feel the impact

Borrowers who already face hurdles in the financial system, including those with limited credit history, irregular income, or nontraditional documentation, could find it harder to get approved.

One group often discussed in this context is individuals who use Individual Taxpayer Identification Numbers (ITINs) instead of Social Security numbers. These borrowers, many of whom are immigrants, already face limited access to credit.

A study by the Urban Institute estimated that only about 5,000 to 6,000 ITIN mortgages were made in 2023, highlighting how rare those loans already are. Additional scrutiny could make approvals even less likely.

Resolve $10,000 or more of your debt

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.¹ <p>Clients who complete the program and settle all debts typically save around 45% before fees or 20% including fees over 24–48 months, based on enrolled debts. “Debt-free” applies only to enrolled credit cards, personal loans, and medical bills. Not mortgages, car loans, or other debts. Average program completion time is 24–48 months; not all debts are eligible, and results vary as not all clients complete the program due to factors like insufficient savings. We do not guarantee specific debt reductions or timelines, nor do we assume debt, make payments to creditors, or offer legal, tax, bankruptcy, or credit repair services. Consult a tax professional or attorney as needed. Services are not available in all states. Participation may adversely affect your credit rating or score. Nonpayment of debt may result in increased finance and other charges, collection efforts, or litigation. Read all program materials before enrolling. National Debt Relief’s fees are based on a percentage of enrolled debt. All communications may be recorded or monitored for quality assurance. In certain states, additional disclosures and licensing apply. ©️ 2009–2025 National Debt Relief LLC. National Debt Relief (NMLS #1250950, CA CFL Lic. No. 60DBO-70443) is located at 180 Maiden Lane, 28th Floor, New York, NY 10038. All rights reserved. <b><a href="https://www.nationaldebtrelief.com/licenses/">Click here</a></b> for additional state-specific disclosures and licensing information.</p>

Mortgage access could shrink

Homebuyers may see some of the biggest changes. Mortgage lenders tend to be more cautious than other types of lenders because of the size and duration of the loans. If banks begin to factor in additional risk considerations tied to documentation or long-term stability, fewer applicants may qualify.

Fannie Mae and Freddie Mac, which back many U.S. mortgages, already have strict requirements and generally do not support ITIN loans and loans tied to nontraditional borrower profiles, limiting the secondary market for those mortgages.

Everyday banking may also change

Opening a bank account, applying for a credit card, or increasing a credit limit could also involve more scrutiny. Banks may ask for additional identification, proof of income, or other documentation before approving applications.

Treasury Secretary Scott Bessent has previously suggested that stricter rules are needed, raising concerns about how easily accounts can be opened without verifying customer background information.

That kind of shift could slow down approvals and make routine financial tasks more complicated for some consumers.

The rules stopped short

Earlier reports suggested the administration was considering a more aggressive approach, including requiring banks to collect detailed information about customers' citizenship status.

That requirement did not make it into the final order. Instead, the administration opted for guidance rather than a strict mandate, giving banks flexibility in how they apply the new standards. Industry groups had pushed back against stricter requirements, arguing they would create significant administrative burdens and increase costs.

Make Money: 8 things to do if you're barely scraping by financially

Risk of more unbanked households

Advocates warn that stricter bank policies could have unintended consequences. If certain groups find it harder to open accounts or access credit, they may turn to alternative financial services, such as check-cashing businesses or payday lenders. These options often come with higher fees and fewer protections.

In some cases, individuals may avoid the banking system altogether, increasing the number of "unbanked" households, a long-standing issue in the U.S. financial system.

Approval standards could shift

Anyone applying for new credit in the coming months could experience more questions, longer approval times, or stricter requirements. That could be especially true for borrowers with nontraditional financial profiles.

Even small changes in approval standards can have ripple effects. A slightly higher bar for credit cards or loans can limit financial flexibility, particularly for households already managing tight budgets.

Bottom line

Donald Trump's new bank order is aimed at reducing financial risk and preventing illicit activity, but it could also reshape how banks evaluate customers.

While the policy stops short of imposing strict new mandates, it encourages lenders to take a more cautious approach, making it more important to avoid these money-wasting habits before applying for credit or loans.

More from FinanceBuzz:

$0 annual fee
Intro APR on purchases and balance transfers
Apply Now

INTRO OFFER: Unlimited Cashback Match for all new cardmembers. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. You could turn $150 cash back into $300.
Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases.
Redeem cash back for any amount. No annual fee.
Get a 0% intro APR for 15 months on purchases. Then 17.49% to 26.49% Standard Variable Purchase APR applies, based on credit worthiness.
Terms and conditions apply.

Discover <span class='whitespace-nowrap'>it<sup>®</sup></span> Cash Back

4.7

Apply Now

on Capital One's secure website

Read Card Review

Intro Offer

Discover will match all the cash back you’ve earned at the end of your first year.

Annual Fee

Why we like it