Individuals who have applied for credit are reporting higher rejection rates in October than they reported in June, according to the Federal Reserve Bank of New York’s latest Credit Access Survey released on Friday, which gauges consumers’ experiences and expectations regarding credit over the previous year.
The results show that the share of applicants who applied for credit in the past 12 months and were rejected rose after a record low in June, landing at 29.5 percent. However, expectations for future credit were unchanged from June. 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 27.8 percent, a steady decrease since February’s 29.8 percent rate and June’s 28.4 percent rate. Rejection rates for mortgages and mortgage refinancing applications rose to 13 percent and 23.6 percent, respectively.