New York Fed: More and more Americans are being rejected when applying for loans | Loans | United States
The latest survey released by the Federal Reserve Bank of New York on the 17th shows that more and more Americans are being rejected when applying for loans, with the proportion of credit applicants being rejected in the 12 months ending in June rising to 21.8%, the highest level in the past five years.
This survey is conducted every four months. In a survey released by the Federal Reserve Bank of New York in February before the collapse of Silicon Valley Bank and several other banks, the proportion of Americans who applied for loans was 17.3%. In the results of this survey, the proportion of people of all ages who are rejected when applying for loans has generally increased, with those with a credit score below 680 being the most severely rejected.
In different loan categories, as of June, the rejection rate of American car loan applications was 14.2%, credit card application rejection rate was 21.5%, credit card limit increase application rejection rate was 30.7%, mortgage loan application rejection rate was 13.2%, and mortgage loan refinancing application rejection rate was 20.8%.
A survey found that nearly 46.1% of mortgage loan applicants expect their loan applications to be rejected, highlighting the serious lack of confidence among credit applicants. During this period, the overall credit application volume in the United States dropped to its lowest level since October 2020.
Bloomberg News Agency said that the survey results show a combined impact of high interest rates in the United States and the cautious attitude of lending institutions. It has become increasingly difficult for Americans to apply for loans, from borrowing money to buy a car to borrowing money to buy a house.