Americans face increased credit rejection rates, reaching 21.8% in 12 months through June. The rejection rate for auto loans exceeded the application rate.

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https://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