Posted 3/6/2024, 2:42:49 AM
Fed Rate Hikes Leading to More Credit Rejections, Forcing Some Borrowers into Vicious Debt Cycles
- 50% or more of consumers denied for loans/credit cards in past 2 years due to higher interest rates from Fed rate hikes
- Tighter credit has led to more rejections for mortgages, rental apps, home equity loans, etc.
- 73% with poor credit denied, but even 29% with 800+ scores facing rejections
- 24% borrowed from family/friends after denial, 23% turned to high-interest alt financing
- Can perpetuate "cycle of debt" when stuck with payday loans at 650% interest rates
