Consumers faced a record number of rejected credit applications last month, according to new data released by the New York Federal Reserve.

This surge in denials could indicate the banks' view of economic uncertainty as inflation and tariffs weigh on Americans, experts told Newsweek.

Why It Matters

Banks decide whether to approve or deny a loan based on several factors related to an applicant’s financial situation. However, worsened economic conditions can heighten the rejection rate as banks brace for more market volatility.

What To Know

The New York Fed found that consumer credit application rejection rates hit a new high in October, just under one in four rejections.

This surge was attributed in part to auto loan rejections climbing high as well as subprime debt nonperforma

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