Individuals who have applied for credit reported higher rejection 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 rejection rates rose to 10.8 percent of those who applied for credit, down from 8.5 percent in February. However, the share of applicants who were too discouraged to apply for credit in the past 12 months fell to 5.1 percent, the lowest reading since the survey’s inception in October 2013. The share of survey respondents who applied for credit during the previous 12 months rose to 43.6 percent — a series high — and those who say they are likely to apply for credit in the next 12 months edged down by 0.5 percent, a series low. Rejection rates for mortgages and mortgage refinancing applications rose in June by 2.6 percent and 10.3 percent, respectively.