N.Y. Fed Sees Record Low Credit Rejection Rates

Individuals who have applied for credit are reporting higher approval rates in June than they reported in February, 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 the share of applicants who received credit in the past 12 months fell a slight 0.6 percentage points in the June survey. However, expectations for future credit declined from February. The share of survey respondents who were too discouraged to apply for credit fell 1 percent fell to 5.4 percent, the lowest since the survey’s inception in October 2013. Rejection rates for mortgages and mortgage refinancing applications rose to 10.3 percent and 17.3 percent, respectively.