Credit Rejection Rate Climbs Well above its 2017 Level
The SCE Credit Access Survey queries respondents every four months about their experiences and expectations of applying for and obtaining credit. The latest data show that the credit application rate stood at 47.8 percent in October, below its prior-year reading of 49.0 percent. The rejection rate measured 21.2 percent in October, well above its October 2017 reading of 15.7 percent. Additionally, while there was no appreciable change in reported borrower-initiated account closings between 2017 and 2018, there was an increase in the proportion of respondents who said that a lender closed one of their accounts (most commonly a credit or store retail card) over the year. In October, 7.2 percent of respondents reported such a lender-initiated event, up from 5.7 percent in October 2017 and 4.2 percent in October 2016.
For more details: Press Release:
Credit Access Survey Shows Credit Tightening as Application and Rejection Rates and Account Closings Increase in 2018