NEW YORK—Fewer banks are raising underwriting standards for credit cards, auto and other consumer loans, though lending conditions remain historically tough, according to a new report.
“Consumers are relying more on credit cards for purchases. This is despite the higher interest rates seen on credit card balances. Credit card debt increased 4.7% during the period and 16.6% from a year ago, meaning Americans now owe $1.08 trillion on their credit cards,” Kiplinger explained.
As a number of analysts have stated in previous CUToday.info reports, Kiplinger predicts delinquency rates on credit cards and auto loans will keep rising amid high card interest rates, high inflation and the slowing economy.
“Also, note how much the average APR for credit cards has risen since late 2021. Borrowers now see an average rate topping 20%, the highest since the mid-1990s,” Kiplinger said.
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