Consumers Seeking Credit Feel Increasingly Discouraged
The SCE Credit Access Survey queries respondents every four months about their experiences and expectations of applying for and obtaining credit. February results show an increase in the unmet credit demand of U.S. consumers compared with October levels. The proportion of consumers feeling “discouraged” when seeking credit rose. Both application rates and rejection rates declined. The survey’s expectations component also painted a subdued picture. The proportion of respondents likely to apply for at least one type of credit over the next twelve months decreased. Consumers were also generally more pessimistic of future approval rates. Two “financial fragility” series introduced publicly with this release capture respondents’ outlook for incurring and meeting unexpected expenses in the next month. The average probability of needing an extra $2,000 remained steady at 32.5 percent, while the average probability for coming up with that sum edged up to 67.2 percent, from 65.9 percent in October.
For more details:
Press Release: Increase in Unmet Credit Demand of U.S. Consumers; Consumers’ Outlook for Future Credit Experiences Deteriorates