# Overdrafts Expose Credit Divide

> 60% of overdraft users face credit denial, revealing financial inequality.
- Title: Overdrafts Expose Credit Divide · Pymnts | Shortify
- Summary: 60% of overdraft users face credit denial, revealing financial inequality. Overdraft fees correlate with credit denials, showing how cash flow struggles…
- Keywords: overdraft, credit denial, cash flow underwriting, federal reserve, consumer bank association, credit access, financial inequality, business, finance, Overdrafts, Expose, Credit
- Source: Pymnts — https://pymnts.com/consumer-finance/2026/overdrafts-expose-a-divide-in-credit-access
- Author: PYMNTS
- Published: 2026-10-09T20:22:32+00:00
- Read time: 1 min
- Topics: overdraft, credit denial, cash flow underwriting, federal reserve, consumer bank association, credit access, financial inequality, business, finance
## Overdraft Fees and Credit Denials
Sixty percent of consumers who paid an overdraft fee also reported a credit denial during the same 12-month period.

> Sixty percent of consumers who paid an overdraft fee also reported a credit denial during the same 12-month period.
## Financial Pressure Drives Overdraft Use
Thin savings leave many households choosing among checking balances, credit, delayed bills and other short-term sources of money.
## Overdraft Use Concentrated Among Lower-Income Groups
Twelve percent of banked adults paid an overdraft fee in 2025. The share reached 20% among consumers with family incomes between $25,000 and $49,999 and 17% among those earning less than $25,000.
## Credit Access Drops for Lower-Income Households
Only 41% of consumers earning less than $50,000 believed they would probably or definitely be approved for a new credit card.
## Cash Flow Underwriting Expands Credit Decisions
Lenders are putting more of that information into underwriting, but are gaining more of a holistic picture than might otherwise be obtained.
## Experian and Plaid Launch Cash Flow Models
Experian launched a cash flow consumer reporting agency that organizes consumer-permissioned bank transactions and balance information for underwriting.
## Key takeaway

Overdraft fees correlate with credit denials, showing how cash flow struggles limit credit access for lower-income households.