Americans are having a much harder time accessing credit. The rejection rate for loan applicants jumped to 21.8% in the 12 months through June, the highest level in 5 years: Fed data. The rejection rate for auto loans exceeded the application rate. t.co/Ag5BnmDKlP pic.twitter.com/w6iSrPAqoj

— Lisa Abramowicz (@lisaabramowicz1) July 17, 2023

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www.newyorkfed.org/microeconomics/sce/credit-access#/

Wut mean?

• Credit application rates in the past year have dropped to 40.3%, the lowest since October 2020, with declines in auto loans and credit card limit requests.
  • However, there was an increase in applications for credit cards, mortgages, and mortgage refinances.
• The overall rejection rate for credit applications has risen to 21.8%, the highest since June 2018, with the most rejections among those with credit scores below 680.
  • The rejection rate for auto loans hit a new high at 14.2%, up from 9.1% in February.
• Despite these trends, the proportion of respondents planning to apply for credit in the next year slightly increased to 26.4%.
• However, the average reported probability of loan application rejection increased sharply across all loan types, hitting new series highs for auto loans, mortgages, and credit card limit increase requests.

by Dismal-Jellyfish