The news: Credit card application rejections rose in October compared with a year ago, according to the Federal Reserve Bank of New York’s latest Survey of Consumer Expectations (SCE) Credit Access Survey.
Why it matters: Issuers are tightening credit standards for new card applications in anticipation of economic turbulence.
The bigger picture: Total US credit card account openings are projected to total 34.8 million in 2024, up 5.2% year over year (YoY), per our forecasts. This is a deceleration from a 7.6% increase this year.
Despite recessionary fears and shifting generational behaviors, credit card account openings will remain positive thanks to factors like digital innovations, which are converting more consumers into cardholders.