"Rising Interest Rates Lead to Increased Loan Denials for Americans"
Originally Published 1 year ago — by USA TODAY
A new survey from Bankrate.com reveals that half of Americans who applied for loans in the past two years were turned down, as banks have been tightening lending rules in response to the Federal Reserve's efforts to combat inflation by raising interest rates. The survey, covering 2,483 adults, found that unsuccessful borrowers most often faced denials for new credit cards or credit-limit increases, with banks continuing to tighten credit standards in 2024. This tightening of credit comes at a time when many Americans are relying on borrowed funds to cover day-to-day expenses, leading to a surge in credit card debt and making it harder for those with weaker credit to access new credit. While borrowing money may become slightly easier in 2024 as the economy improves, it ultimately depends on broader economic conditions and the potential for a recession.
