Tighter Lending Standards Leave Half of AmericansDenied Financial Products

Americans are having a harder time getting approved for loans and financial products since the Fed started raising interest rates in March 2022. 50% of applicants have been denied a loan or financial product.

Credit card applications have been rejected the most, with 14% denied a new card and 6% denied a balance transfer card. Others denied personal loans (10%), car loans (9%), insurance (8%), and mortgages (5%).

Banks are tightening lending standards in response to higher interest rates, making it harder to get approved for loans. Rates have surged from near 0% to above 5% in just 16 months.

Those with lower credit scores are more likely to be denied, with 73% of those with "poor" credit denied compared to 63% with "fair" and 55% with "good."

Boosting your credit score can help Americans insulate themselves from higher rates. Lower debt-to-income ratio, make payments on time, and keep credit utilization under 30%.