Posted 3/5/2024, 10:24:53 AM
Borrowers Face Tougher Lending Standards As Rates Rise and Banks Tighten Credit
- Half of recent loan applicants have been denied, per a Bankrate.com survey, as banks tighten lending standards
- Denials often involve credit cards or car loans; interest rate hikes by the Federal Reserve have prompted stricter lending
- Monthly mortgage payments can more than double with higher interest rates, making borrowing tougher
- More Americans now carry credit card debt month-to-month to afford essentials, while total balances top $1 trillion
- Borrowers with lower credit scores face the most rejections; accessing affordable credit may depend on economic conditions
