US consumer credit applications climb to highest level since 2021

US consumers applied for new credit in June at the highest rate recorded since October 2021, according to the Federal Reserve Bank of New York. The rise points to firmer household demand for borrowing even as measures of financial strain remain elevated for some consumers.

The figures come from the New York Fed’s Survey of Consumer Expectations Credit Access Survey, which tracks households’ recent credit applications, rejection experiences and expectations about future access to credit. The survey covers products including credit cards, auto loans, mortgage refinancing, higher credit card limits and mortgages.

Compared with February 2026, the New York Fed said consumers reported a lower average probability of applying for a new credit card, auto loan, mortgage refinance or higher credit card limit. The reported likelihood of seeking a mortgage increased slightly over the same period.

Perceived credit access also improved. The New York Fed said consumers’ average expected chance of being turned down declined across all credit categories included in the survey.

The reported rejection rate for any type of credit over the previous 12 months was 16.1% in June, according to the New York Fed. That was described as slightly higher than the prior reading, while remaining below the 23.1% rate recorded in June of the previous year.

Credit application data can give investors and policymakers a view of household balance-sheet pressure and borrowing appetite. A consumer may seek new credit to finance purchases, refinance existing obligations or add liquidity through higher card limits. Rejection rates and rejection expectations help indicate whether lenders are tightening or loosening access, though the survey is based on household responses rather than lender underwriting data.

Emergency expense concerns remain visible

The New York Fed also reported a rise in the average probability that a household would need to find $2,000 for an unexpected expense within the next month. That measure reached 34% in June.

At the same time, consumers reported a slightly better ability to absorb such a cost. The average likelihood of being able to afford a $2,000 emergency expense increased to 66% in June from 63% in February, according to the New York Fed.

Separate research from PYMNTS Intelligence found a sharper divide among households by financial condition. PYMNTS reported that 43% of consumers living paycheck to paycheck and struggling to pay bills would be unable to cover a $1,200 emergency expense within one week. Among consumers not living paycheck to paycheck, the comparable share was 3%.

PYMNTS Intelligence also found that nearly 70% of financially strained paycheck-to-paycheck consumers said their savings would last no more than one month if they missed work. Within that group, 45% said they had no savings available.

Rising essential costs remain a pressure point for lower-buffer households, according to PYMNTS. The research found that 54% of consumers living paycheck to paycheck and having difficulty paying bills said essential expenses had increased by “a lot,” compared with 22% of consumers who were not living paycheck to paycheck.

PYMNTS said many consumers under financial strain have adjusted spending patterns rather than halted spending altogether. Its research found that 53% of the most financially strained consumers reduced spending on restaurants, entertainment, travel and other nonessential items over the past year, compared with 41% of paycheck-to-paycheck consumers who did not report difficulty paying bills.

This story draws on original reporting from PYMNTS.