Credit Card Applications Rise as Americans Turn to Plastic to Bolster Spending Amid Soaring Inflation
Credit card applications are on the rise as more and more Americans deal with soaring inflation and with less cash on hand before the holidays.
Households are spending more on necessities like food, gas, and housing, according to a New York Federal Reserve survey released on Nov. 21.
The interest rates on credit cards have also hit a record high as the Federal Reserve continues its hawkish monetary tightening policy to fight high inflation.
The New York Fed reported that the growth in credit card demand coincided with the record increase in credit card debt over the past year.
The application rate for credit cards increased to 27.1 percent in October, up from 26.5 percent at the same time last year….