Credit applications are down and rejection rates are on the rise – Mish Talk
Widely reduced access to credit during the pandemic
The New York Fed Credit investigation shows that credit applications are generally fewer and rejections are higher.
- The October 2020 survey shows that most credit application and acceptance rates drop sharply with the onset of the coronavirus pandemic.
- Credit card application and acceptance rates and credit limit increases posted the largest declines since February 2020, followed by auto loans.
- However, the mortgage refinancing demand rate continued to climb through 2020, driven by demand from borrowers with high credit scores (above 760).
Credit card application and rejection rate
Credit card limit increase requests and rejection rates
Auto loan applications and rejection rates
Home loan applications and rejection rate
Mortgage refinancing applications and rejection rates
- The rejection rate for credit card applications is at an all-time high of 21%.
- The credit card limit increase rejection rate is 37%. The record level is 38% reached in June and also in 2014.
- The rejection rate for mortgage refinancing is a record 6%.
If you want to fill up your credit card to pay the bills, chances are you can’t.
But if you’re a homeowner and your mortgage is up to date, hurray.