topic Re: US credit card applications tumble But banks are rejecting more of those who do apply in Credit in the News

US credit card applications tumble But banks are rejecting more of those who do apply

SouthJamaica — Thu, 24 Dec 2020 03:18:19 GMT

SORRY FOLKS. IT WAS AN INTERESTING ARTICLE WHEN I READ IT EARLIER IN THE DAY, BUT NOW IT'S PAYWALLED. SO UNLESS YOU HAVE A SUBSCRIPTION TO THE FINANCIAL TIMES, THERE'S NOTHING FOR YOU TO READ.

-SouthJamaica

US credit card applications tumble But banks are rejecting more of those who do apply

https://www.ft.com/content/5047c1b6-8ce3-4bff-ad38-530a35e7863e

Re: US credit card applications tumble But banks are rejecting more of those who do apply

GApeachy — Wed, 23 Dec 2020 22:51:50 GMT

Thanks @SouthJamaica but it takes me to a subscription page.

Re: US credit card applications tumble But banks are rejecting more of those who do apply

SouthJamaica — Thu, 24 Dec 2020 03:15:01 GMT

@GApeachy wrote:
Thanks @SouthJamaica but it takes me to a subscription page.

Wow, sorry about that.

I wonder how come it's paywalled now but it wasn't when I read it earlier.

I'm going to ask moderator to remove the thread.

Re: US credit card applications tumble But banks are rejecting more of those who do apply

Remedios — Thu, 24 Dec 2020 03:20:24 GMT

This should work.

https://www.google.com/amp/s/amp.ft.com/content/5047c1b6-8ce3-4bff-ad38-530a35e7863e

Re: US credit card applications tumble But banks are rejecting more of those who do apply

SouthJamaica — Thu, 24 Dec 2020 03:35:39 GMT

@Remedios wrote:
This should work.

https://www.google.com/amp/s/amp.ft.com/content/5047c1b6-8ce3-4bff-ad38-530a35e7863e

Thanks but no, same thing.

Re: US credit card applications tumble But banks are rejecting more of those who do apply

Slabenstein — Thu, 24 Dec 2020 03:39:36 GMT

Opening the page in a private Firefox window got me past the paywall, for whatever reason. Dunno if that will work for others.

Re: US credit card applications tumble But banks are rejecting more of those who do apply

Remedios — Thu, 24 Dec 2020 03:40:54 GMT

Works for me, takes a few seconds to load

Re: US credit card applications tumble But banks are rejecting more of those who do apply

Remedios — Thu, 24 Dec 2020 04:43:23 GMT

Since I don't like unresolved issues, here is the article

US economy US credit card applications tumble But banks are rejecting more of those who do apply

December 21, 2020 10:56 pm by Robert Armstrong in New York

Demand for consumer credit in the US has fallen dramatically during the Covid-19 crisis, with credit card applications falling to multiyear lows, according to a Federal Reserve survey released on Monday.

The proportion of households applying for any form of credit over the past 12 months fell by 11 percentage points, to 35 per cent, between February and October, according the New York Federal Reserve Bank’s survey of consumer expectations credit access survey.

But the drop in demand was most acute for new credit cards, where the application rate fell 10 points to just under 16 per cent, the lowest level since the Fed began collecting application data in 2013.

Charles Peabody, bank analyst at Portales Partners, said that the falling demand in part reflected federal stimulus programmes earlier in the year which sent cheques to many American households.

“A lot of the government money that has been given to individuals is sufficient to pay down credit card and auto debt,” he said, reducing demand for additional credit.

Credit card balances held by US banks have fallen by about $100bn to $750bn since the pandemic began, according to Fed data, and credit card networks recorded lower spending for much of the year as lockdowns have crimped activity — although Visa and Mastercard said there had been an almost full recovery in US payment volumes by October.

“We anticipate credit card borrowing will rise around the end of the year,” Mr Peabody said, though the new stimulus bill going through Congress could have a dampening effect, since it contains an additional round of direct payments to households.

There was an exception to the decline in credit demand shown in the latest Fed survey. Over 15 per cent of the surveyed households applied for a mortgage refinancing in the 12 months ending in October, according to the Fed survey, up from 11 per cent in February, reflecting sharply lower interest rates.

The decline in credit applications was greatest among those over 60 years of age and people with less than perfect credit scores, the Fed found.

At the same time as demand for credit has fallen, financial institutions have become more selective about extending it. Rejection rates for all types of consumer credit application rose by almost 4 percentage points, to 18 per cent, between February and October.

Rejection rates for credit cards, which hit a multiyear low in February, have since returned to a historically normal level of just over 20 per cent.

Rejection rates for mortgage refinancing applications, though, have plummeted from 16 per cent in February to less than 6 per cent in February.

The results from the credit access survey broadly correspond to those of the Fed’s loan officer survey for October, which show that the proportion of institutions tightening credit standards for consumer loans jumped in the first half of this year. While credit standards have loosed since then, they still remain tighter than normal.

Re: US credit card applications tumble But banks are rejecting more of those who do apply

GApeachy — Thu, 24 Dec 2020 06:50:18 GMT

I had tried going 'incognito' on chromebook to no avail..... @Remedios you go girl! Glad you found a way

@SouthJamaica yeah,interesting article. I pictured MF'er's doing Azeo and Gardening all at the same time and the world getting pulled into a worm hole. hahahahaha! I noticed that rejection rate was similar back in 2018, that's when I first came here to myFico and was reading an awful lot of daily posts about Azeo and Gardening. Coincidence?

I'm not surprised that mortgage refi has climbed and ppl are refinancing at a lower rate, but I get my credit news here first so no surprises to this mf'er.

Re: US credit card applications tumble But banks are rejecting more of those who do apply

macinjosh — Thu, 24 Dec 2020 10:16:12 GMT

@GApeachy wrote:
I had tried going 'incognito' on chromebook to no avail..... @Remedios you go girl! Glad you found a way
@SouthJamaica yeah,interesting article. I pictured MF'er's doing Azeo and Gardening all at the same time and the world getting pulled into a worm hole. hahahahaha! I noticed that rejection rate was similar back in 2018, that's when I first came here to myFico and was reading an awful lot of daily posts about Azeo and Gardening. Coincidence?
I'm not surprised that mortgage refi has climbed and ppl are refinancing at a lower rate, but I get my credit news here first so no surprises to this mf'er.

It was very smart for people to refi while rates were low. Once things start getting better, those rates will go back up. Hopefully it'll be a while though.

Re: US credit card applications tumble But banks are rejecting more of those who do apply

FinStar — Thu, 24 Dec 2020 18:18:47 GMT

@SouthJamaica wrote:
@Remedios wrote:
This should work.

https://www.google.com/amp/s/amp.ft.com/content/5047c1b6-8ce3-4bff-ad38-530a35e7863e

Thanks but no, same thing.

Both worked for me 🌏🤷‍♂️🌏

Re: US credit card applications tumble But banks are rejecting more of those who do apply

Slabenstein — Thu, 24 Dec 2020 18:35:51 GMT

@FinStar wrote:
@SouthJamaica wrote:
@Remedios wrote:
This should work.

https://www.google.com/amp/s/amp.ft.com/content/5047c1b6-8ce3-4bff-ad38-530a35e7863e

Thanks but no, same thing.
Both worked for me 🌏🤷‍♂️🌏

Financial Times wants money, but only from some of us, some of the time.

Re: US credit card applications tumble But banks are rejecting more of those who do apply

cashorcharge — Thu, 24 Dec 2020 20:56:40 GMT

Thanks @Remedios

Re: US credit card applications tumble But banks are rejecting more of those who do apply

GApeachy — Thu, 24 Dec 2020 21:21:11 GMT

@FinStar wrote:
@SouthJamaica wrote:
@Remedios wrote:
This should work.

https://www.google.com/amp/s/amp.ft.com/content/5047c1b6-8ce3-4bff-ad38-530a35e7863e

Thanks but no, same thing.
Both worked for me 🌏🤷‍♂️🌏

What did you use? browser? pixie dust? truffles instead of cookies?

Re: US credit card applications tumble But banks are rejecting more of those who do apply

Anonymous — Sun, 27 Dec 2020 05:43:53 GMT

Thanks!

Re: US credit card applications tumble But banks are rejecting more of those who do apply

Anonymous — Thu, 31 Dec 2020 20:50:33 GMT

Might also be that everyone is getting a Mortgage instead of a Credit Card, at least that's how it seems with all thses houses selling like hotcakes.

Re: US credit card applications tumble But banks are rejecting more of those who do apply

FinStar — Sat, 02 Jan 2021 00:51:22 GMT

@GApeachy wrote:
@FinStar wrote:
@SouthJamaica wrote:
@Remedios wrote:
This should work.

https://www.google.com/amp/s/amp.ft.com/content/5047c1b6-8ce3-4bff-ad38-530a35e7863e

Thanks but no, same thing.
Both worked for me 🌏🤷‍♂️🌏

What did you use? browser? pixie dust? truffles instead of cookies?

I was using incognito and I didn't realize I had a complimentary subscription as well 😁. I may have added a little pixie dust too 😛.

Re: US credit card applications tumble But banks are rejecting more of those who do apply

GApeachy — Sat, 02 Jan 2021 01:30:40 GMT

@FinStar wrote:
@GApeachy wrote:
@FinStar wrote:
@SouthJamaica wrote:
@Remedios wrote:
This should work.

https://www.google.com/amp/s/amp.ft.com/content/5047c1b6-8ce3-4bff-ad38-530a35e7863e

Thanks but no, same thing.
Both worked for me 🌏🤷‍♂️🌏

What did you use? browser? pixie dust? truffles instead of cookies?
I was using incognito and I didn't realize I had a complimentary subscription as well 😁. I may have added a little pixie dust too 😛.

...and a little PH too?

Re: US credit card applications tumble But banks are rejecting more of those who do apply

Anonymous — Mon, 04 Jan 2021 01:09:36 GMT

@Remedios wrote:
Since I don't like unresolved issues, here is the article

US economy US credit card applications tumble But banks are rejecting more of those who do apply

In my not-so-new grumpy old man 2021 mode, getting stuff this way from behind a paywall, just because it works, would be frowned on by many in a credit card context: as "this is we can't have nice things" nonsense.

Re: US credit card applications tumble But banks are rejecting more of those who do apply

Remedios — Mon, 04 Jan 2021 02:50:50 GMT

@Anonymous wrote:
@Remedios wrote:
Since I don't like unresolved issues, here is the article

US economy US credit card applications tumble But banks are rejecting more of those who do apply

In my not-so-new grumpy old man 2021 mode, getting stuff this way from behind a paywall, just because it works, would be frowned on by many in a credit card context: as "this is we can't have nice things" nonsense.

Right, except unlike some in CC crowd, I didnt get busted by FT because I didnt go overboard and pasted every article from last

three years and then went "Oh well, it was great reading while it lasted. You gotta start copying early on before they catch on"

Also, I you, too