Consumers’ Credit Market Experiences Improve; Expectations for Future Credit Approval Dip

The Federal Reserve Bank of New York’s latest survey on credit access shows credit card application rates increased over the last several months while rejection rates declined. Consumers’ overall experiences in the credit market, including applications for credit and acceptance rates, improved since February. Application rejection rates for all credit types, except housing-related debt, approached the series low of 19.2 percent reached in June 2015. The per applicant rejection rate for all credit types, including credit cards, auto loans and mortgages, dropped from 20.9 percent in February 2016 to 19.3 percent in June 2016. 

For credit cards, the application rate increased from 28.5 percent in February to 30.6 percent in June, marking the highest result since the Fed started the survey. The rejection rate for credit card applications also declined from 17.3 percent in February to 15 percent in June. More info here.