As US credit card debt hits $1.29T, bank algorithms are rejecting debt-free, six-figure earners

Across the country, Americans earning six-figure salaries, carrying no debt and sitting on healthy savings accounts are increasingly hitting an unexpected wall when applying for everyday credit cards or loans: instant denial from automated bank algorithms.

The rejections highlight a growing rift between kitchen-table financial discipline and corporate underwriting models. While nationwide credit card balances have climbed to a record $1.29 trillion — a 67% surge since early 2021, according to the Federal Reserve Bank of New York — data from the Consumer Financial Protection Bureau (CFPB) shows an estimated 25 million adults have credit files…

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