Credit is tightening across the U.S., and a new post from market commentator The Kobeissi Letter on X has drawn attention to a notable spike in rejection rates reported by the New York Federal Reserve.
According to the data highlighted in the post, the overall rejection rate for U.S. credit applications has climbed to 24.8% over the past 12 months. That is the highest level since tracking began in 2014, and it means about one in four applications are rejected.
The surge in denials could indicate banks’ growing concern over economic uncertainty, as inflation and tariffs continue to weigh on American households and pressure lenders to adopt stricter standards.
The Kobeissi Letter noted that the rate has risen 10.4 percentage points since February 2020, reflecting the sharp tightening in lending standards since the pandemic era.
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