SCE CREDIT ACCESS SURVEY
June Survey: Consumers’ Credit Application and Rejection Rates Stable, Share of Discouraged Borrowers Ticks Down
- Reported application and rejection rates for any kind of credit over the past twelve months were largely stable (and have been so for the last two years), with the exception of rejection rates for auto loan and mortgage refinance requests, which declined sharply in June.
- The share of discouraged borrowers, defined as respondents reporting that they did not apply for any credit because they didn’t think they would get approved (despite reporting a need for credit), retreated from a high of 8.5 percent to 7.2 percent, but the measure remains well above its June 2024 level of 5.5 percent.
- The average likelihood of applying for a new credit card, auto loan, mortgage, mortgage refinance, or for an increase in a credit card limit over the next twelve months all rose slightly. The average perceived likelihoods of a new credit card, home loan, or auto loan application being rejected over the next twelve months declined in June, while expected rejection rates for mortgage refinances and for requests for credit card limit increases rose somewhat.
- The average likelihood of an unexpected need to come up with $2,000 arising within the next month increased to 36.1 percent in June, while the average likelihood of being able to come up with $2,000 increased slightly from its previous series low of 62.7 percent to 63.1 percent.
