NEW YORK—Since June 2020, the likeliness of a credit card application being declined surged to 35.1% in October from 26%, according to data from the Federal Reserve of New York.
The high turndown rate is the largest on record since 2014, Payments Journal said.
“The decrease is undoubtedly not a surprise, as we continue to contend with the economic impact of COVID-19. According to the Conference Board, consumer confidence dropped in November from 101.4 to 96.11 on the index. And, according to the Fed’s Senior Loan Officer Opinion Survey, lenders also feel queasy about lending,” the Payments Journal said.