Credit Rejection Rates Surge in 2024, Fed Reports

New York Fed survey reveals increased borrowing challenges for Americans, with rejection rates hitting post-pandemic highs.

The Federal Reserve Bank of New York's survey indicates a rise in credit application rejections to 21% in 2024, up from 20.1% in 2023.
Rejection rates for mortgage refinancing and auto loans are the highest since the survey began in 2013.
Consumers with credit scores below 680 faced significant challenges, experiencing higher rejection rates than before the pandemic.
Despite difficulties, the average application rate remained steady, though consumers expect to apply for less credit in the future.
Economic pressures, including inflation, continue to impact consumer confidence and financial institutions' risk tolerance.