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Bloomberg
US consumers continued to seek out more credit cards this year even as the Federal Reserve aggressively lifted borrowing costs, a shift that cooled demand for mortgages, auto loans and other types of credit, according to research from the New York Fed.
The New York Fed’s most recent credit-access survey showed an application rate for credit cards of 27.1% for October, remaining “robust†after a 26.5% rate seen a year before. By contrast, the application rate for credit overall declined slightly, after a 2021 rebound.
Demand for any kind of credit is strongest from consumers with high credit scores, the study showed. Application rates for people with credit scores over 760 were above pre-pandemic levels, while rates for consumers with credit scores below 680 were below pre-pandemic levels.