Credit Application Rates Decline, Rejection Rates Rise
The application rate for any kind of credit over the past twelve months declined to 41.2 percent from 44.8 percent in 2022, according to the October SCE Credit Access Survey. Average application rates declined in 2023 vs. 2022 for credit cards, auto loans, mortgage loans, and mortgage refinancing, but rose for credit card limit increases. Mortgage loan applications fell to a new series low of 4.3 percent. Rejection rates increased for credit cards, auto loans, and mortgage loan refinance applications, but decreased for mortgage and credit card limit extension applications. The average rejection rate of 11.0 percent for auto loans was the highest rate since the start of the series in 2013. Households’ likelihood of applying for at least one type of credit over the next 12 months decreased notably to 25.1 percent. The average perceived likelihood of a future credit application being rejected, conditional on applying over the next 12 months, was higher for all loan types.
Editor’s Note: We are currently working through some technical issues in the interactive charts regarding the display of dates along the x-axis. As a result, data for 2013-14 are currently not presented in the interactive charts; data for all years remain available to download, however.
For more details: Press Release:
Consumers Expect Further Decline in Credit Applications and Rise in Rejection Rates; Survey Results Indicate Slight Increase in Financial Fragility Among Households