N.Y. Fed Sees Decline in Credit Rejection Rates

Individuals who have applied for credit reported higher lower rejection rates in February than they reported in October, according to the Federal Reserve Bank of New York’s latest Credit Access Survey released today, which gauges consumers’ experiences and expectations regarding credit over the previous year.

The results show that rejection rates dropped to 8.5 percent of those who applied for credit, down from 9.9 percent in October. However, the share of applicants who were too discouraged to apply for credit in the past 12 months rose to 7.1 percent, the highest level since June 2014 and a 1.4 percent jump from October. The share of survey respondents who said they are likely to apply for at least one type of credit over the next 12 months fell to 26 percent, a steady decrease since June 2016 and its lowest level since the survey’s inception in October 2013. Rejection rates for mortgages and mortgage refinancing applications also fell, by 0.3 percent and 12.8 percent, respectively.

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