In this article, we will examine the Top 9 Credit Services Stocks to Buy as the US Cuts Interest Rates.
A window of opportunity is brewing up in the financial services sector. According to Wells Fargo, when the US Federal Reserve cuts interest rates, the industry often rallies if there is no recession. With the Central Bank resuming its easing cycle, more people and businesses are likely to seek credit, resulting in heightened activity in the sector.
According to Matt Quinlan, portfolio manager at Franklin Templeton, financial services companies should benefit from a pickup in business activity as interest rates decline. Some of the biggest beneficiaries should be companies that extend credit and make loans to individuals and businesses. That’s in part because lower interest rates make credit and loans cheaper.
In addition, the industry is expected to benefit from deregulation under the Trump administration.
“The credit part of banks and financial companies is holding in there and should hold in there well, and then we’re also seeing some really good dividend growth,” Quinlan said.
Amid the positive long-term outlook, the sector has also come under pressure due to loose lending practices, especially in the opaque private credit market. Companies facing sizable charges due to bad loans to a couple of borrowers are a point of concern.
“Today, I think, the risk to the bank space is idiosyncratic,” said Timothy Coffey, associate director of depository research at Research Janney Montgomery Scott. “The risk to the insured bank space for private credit could be more systemic, as well as the risk to credit quality from a weakening economy.”
Amid the high-interest-rate environment, the credit services sector has lagged the overall market. The sector’s 1-year return stands at 11.32% compared to a 13.68% gain for the S&P 500 over the same period. The underperformance underscores the room for growth as people and businesses seek cheap credit in a lower-interest-rate environment.
Let’s take a look at some of the top credit services stocks to buy amid the US rate cut.
Our Methodology
To compile the list of the top credit services stocks to buy as the US cuts interest rates, we used Finviz to screen for companies that offer credit services. We settled on companies that are popular among elite hedge funds. Finally, we ranked the stocks in ascending order based on the number of hedge fund holders, as reported by Insider Monkey’s Q2 2025 database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Top Credit Services Stocks to Buy as the US Cuts Interest Rates
9. Oportun Financial Corporation (NASDAQ:OPRT)
Number of Hedge Fund Holders: 20
Oportun Financial Corporation (NASDAQ:OPRT) is one of the top credit services stocks to buy amid the US rate cut. On October 14, Oportun Financial Corporation (NASDAQ:OPRT) successfully enhanced its debt capital structure. The company closed a $247 million three-year revolving term committed warehouse facility with Citizens Financial Group.
Additionally, it secured a 12-month extension of an existing warehouse facility with Goldman Sachs. The two warehouse facilities are priced at favorable terms and expected to reduce financing costs. In addition, the total committed warehouse capacity has increased to $1.14 billion from $954 million. The weighted term for the combined warehouse facilities has also increased to 25 months from 17 months.
“Reducing total warehouse financing costs while increasing committed warehouse capacity helps ensure Oportun is well placed to continue delivering for our investors and members,” said Paul Appleton, Interim Chief Financial Officer at Oportun.
Oportun Financial Corporation (NASDAQ:OPRT) is a financial services company that provides loans, savings, and budgeting tools, particularly for individuals with limited or no credit history. It offers personal and auto loans, as well as digital banking and savings products, leveraging AI to assess creditworthiness and help manage financial goals.
8. OppFi Inc. (NYSE:OPFI)
Number of Hedge Fund Holders: 23
OppFi Inc. (NYSE:OPFI) is one of the top credit services stocks to buy amid the US rate cut. On October 2, OppFi Inc. (NYSE:OPFI) announced a new $150 million revolving credit facility with Castlelake L.P., replacing its previous arrangement and lowering its interest rate to SOFR plus 6.0%.
The four-year deal reflects improved financing terms and highlights OppFi’s strong liquidity, backed by a current ratio of 19.57. With revenue up 31% year-over-year and analysts raising earnings estimates, the company expects the facility to support growth in receivables and expand access to underserved borrowers. OppFi holds a 35% stake in Bitty Holdings, which provides funding solutions to small businesses.
OppFi Inc. (NYSE:OPFI) is a tech-enabled financial platform that provides installment loans to consumers, often those underserved by traditional banks, through its OppLoans platform. The company partners with banks to offer financial products and uses a data-driven approach with over 500 attributes to assess creditworthiness.
7. EZCORP, Inc. (NASDAQ:EZPW)
Number of Hedge Fund Holders: 32
EZCORP (NASDAQ:EZPW) is one of the top credit services stocks to buy as the US cuts interest rates. On October 6, Canaccord Genuity reiterated a ‘Buy’ rating on EZCORP (NASDAQ:EZPW) and raised the price target to $27 from $25.
The price target hike comes after the research firm conducted 12 rounds of store checks at the company and FirstCash locations across the country. Following the checks, the research firm remains confident about the company’s business in the pawn sector amid solid trends. Core consumers are increasingly seeking value through the company’s services despite the ongoing financial pressures.
Cannacord Genuity remains impressed by the robust performance of some of the company’s locations, as reflected in detailed feedback from store managers. The company is also benefiting from solid execution and improvements in the business model, such as enhanced inventory management.
EZCORP (NASDAQ:EZPW) provides short-term financial solutions, primarily through pawn loans. It also generates revenue by selling pre-owned and recycled merchandise, which includes items forfeited from pawn loans and goods purchased from customers.
6. Firstcash Holdings Inc. (NASDAQ:FCFS)
Number of Hedge Fund Holders: 35
FirstCash Holdings Inc. (NASDAQ:FCFS) is one of the top credit services stocks to buy amid the US rate cut. On October 3, analysts at Cannacord Genuity reiterated coverage of FirstCash Holdings Inc. (NASDAQ:FCFS) with a ‘Buy’ rating and a $200 price target.
FirstCash, now operating 3,300+ pawnshops across the U.S., Latin America, and the UK after acquiring H&T Group, is seen by analysts as well-positioned in a highly attractive industry. Canaccord views pawn as a strong business and believes the stock deserves a premium valuation.
Firstcash Holdings Inc. (NASDAQ:FCFS) has made a name for itself by operating pawn stores, which offer small loans secured by personal property. Pawn loans give borrowers the option to repay the loan with interest or forfeit their property without further consequences.
5. Synchrony Financial (NYSE:SYF)
Number of Hedge Fund Holders: 45
Synchrony Financial (NYSE:SYF) is one of the top credit services stocks to buy amid the US rate cut. On October 13, analysts at RBC Capital reiterated a ‘Sector Perform’ rating on Synchrony Financial (NYSE:SYF) but cut the price target to $76 from $78.
The research firm reiterated the ‘Sector Perform’ rating, underlining its neutral outlook for the company. It also cited the company’s leverage to consumer health and spending patterns as a key reason behind the slight price adjustment.
Similarly, the research firm has echoed Synchrony Financial’s credit performance, which has shown significant improvement amid broader economic concerns. Likewise, it expects broader growth across the company’s platforms that should fuel stock performance.
The company has already completed the acquisition of consumer financial software provider Versatile Credit. The acquisition secures access to the company’s platform, which connects Merchants, lenders, and consumers via point-of-sale solutions.
Synchrony Financial (NYSE:SYF) is a financial services company that provides a variety of financing solutions, including private-label and general-purpose credit cards, installment loans, and other promotional financing for consumers and businesses. It partners with retailers, healthcare providers, and businesses across key industries to help consumers finance purchases.
4. SoFi Technologies Inc. (NASDAQ:SOFI)
Number of Hedge Fund Holders: 47
SoFi Technologies Inc. (NASDAQ:SOFI) is one of the top credit services stocks to buy amid the US rate cut. On October 24, Truist raised its price target for SoFi Technologies (SOFI) from $23 to $29 while maintaining a Hold rating.
This update was part of a broader research note previewing Q3 earnings across the Payments and FinTech sector. The firm anticipates strong Q3 results, citing resilient consumer spending as a key driver. However, Truist cautioned that Q4 guidance might disappoint for some companies due to challenging year-over-year comparisons following last year’s robust holiday season.
Despite the optimistic outlook for Q3, Truist urged investors to remain discerning when investing in the Payments and FinTech space. The firm emphasized that while certain players may benefit from current consumer trends, the sector’s performance in the upcoming quarter could be uneven. As a result, strategic allocation and careful stock selection will be crucial for navigating potential volatility.
SoFi Technologies Inc. (NASDAQ:SOFI) is a financial services platform that provides a wide range of products, including student loan refinancing, personal loans, home loans, and a banking app. It offers products like SoFi Money, SoFi Invest, and a credit card. SoFi targets tech-savvy consumers with good credit scores by providing user-friendly apps and competitive rates.
3. American Express Company (NYSE:AXP)
Number of Hedge Fund Holders: 70
American Express Company (NYSE:AXP) is one of the top credit services stocks to buy as the US cuts interest rates. On October 20, William Blair analyst Christopher Kennedy reiterated a Buy rating on American Express Company (NYSE:AXP), citing its strong market position and growth trajectory. The company continues to lead in the premium card segment, with shares trading at a discount to the S&P 500 despite delivering above-market growth and superior return on equity. Kennedy highlighted management’s focus on sustainable earnings and strategic investments as key drivers of long-term value.
CEO Steve Squeri’s emphasis on premium consumers and small businesses has strengthened American Express’s acceptance network and customer appeal. Notably, the refreshed U.S. Platinum Card has boosted engagement and doubled account acquisitions. Supporting this bullish sentiment, Truist Financial also maintained a Buy rating on AXP the same day, setting a price target of $395.
Previously on October 13, RBC Capital raised American Express’s price target from $360 to $380, maintaining an ‘Outperform’ rating based on its strong customer base, earnings growth outlook, and competitive credit facility.
American Express Company (NYSE:AXP) is a global services company that provides payment card products, as well as other financial and travel-related services. It issues its own card products and operates a payment network, but also partners with banks and financial institutions to issue cards and acquire merchants.
2. Mastercard Incorporated (NYSE:MA)
Number of Hedge Fund Holders: 158
Mastercard Incorporated (NYSE:MA) is one of the top credit services stocks to buy as the US cuts interest rates. On October 23, Citi analyst Bryan Keane began coverage of Mastercard (NYSE: MA) with a Buy rating and a $735 price target. Keane highlighted Mastercard’s strong position in high-margin cross-border transactions and its consistent track record of innovation, calling it a “compelling investment case” among global network service providers.
Earlier on October 14, the company unveiled a next-generation platform that unifies its market-leading services with those of its partners, helping businesses simplify and navigate the complexities of commerce. Merchant Cloud is the platform designed to support and accelerate expansion into new markets while delivering exceptional end-user experiences. It also comes with scheme-agnostic solutions for credential tokenization, guest checkout fraud protection, and identity verification.
The platform will make it easy for merchants to conduct agentic payments securely while integrating Mastercard Agent Pay. Merchants will also enjoy the opportunity to leverage the platform to provide consumers with a seamless, trusted, and agentic shopping experience.
“With Mastercard Merchant Cloud, commerce is truly simplified through a unified, scalable, secure, and open infrastructure — one that not only supports the needs of merchant partners today with data, services and insights, but is also designed to anticipate the future of digital and agent-driven commerce,” said Gaurang Shah, executive vice president, Global Acceptance & Merchant Solutions at Mastercard.
Mastercard Incorporated (NYSE:MA) is a global technology company that facilitates digital payments by connecting consumers, financial institutions, and businesses. It provides a network for secure, simple transactions via credit, debit, and prepaid cards and offers value-added services such as data insights, cybersecurity, and fraud management to support the digital economy.
1. Visa Inc. (NYSE: V)
Number of Hedge Fund Holders: 167
Visa Inc. (NYSE:V) is one of the top credit services stocks to buy amid the US rate cut. On October 23, Citi initiated coverage of Visa Inc. (NYSE:V) with a Buy rating and a $450 price target, citing its dominant network, strong brand, and central role in payments as key competitive advantages. The analyst also highlighted favorable cross-border trends and well-timed pricing changes as positive drivers for the stock.
Previously on October 14, the company launched a new framework that will allow merchants to verify AI agents and distinguish them from malicious bots in e-commerce. Trusted Agent Protocol is the new AI agent verification framework developed in collaboration with Cloudflare. It is designed to enable communication between AI agents and merchants during e-commerce transactions.
The launch of the new protocol coincides with a surge in AI-driven traffic to retail websites, which has jumped over 4,700% in the past year. Consequently, it is designed to ensure that only approved agents securely pass critical information to merchants while providing a framework for recognizing trusted agents with commerce intent. The unveiling of the new protocol underscores Visa’s commitment to supporting safe, more seamless interactions in payment ecosystems.
Visa Inc. (NYSE:V) is a digital payments technology company that operates a global payment network, connecting consumers, merchants, and financial institutions to facilitate electronic transactions. It is not a credit card company itself, but provides the technology and network that enable a wide range of payment products, such as credit, debit, and prepaid cards, to be used for online and in-store purchases.
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