More Americans Expect Credit Requests to be Rejected
Increasing Fears of Credit Rejections
Recent data from the New York Federal Reserve indicates a troubling trend among American consumers. More Americans expect credit requests to be rejected, reflecting a significant decline in confidence regarding the ability to secure loans. As of February, 46.7% of respondents anticipated it would be harder to obtain credit a year from now, the highest level since June 2024.
Discouraged Borrowers on the Rise
The survey also highlighted that the share of discouraged borrowers—those who require credit but refrain from applying due to fear of denial—skyrocketed to 8.5% in February. This is the highest percentage recorded since the inception of the Survey of Consumer Expectations (SCE) in October 2013.
- The perceived probability of rejection for auto loans increased to 33.5%, marking the highest level since the survey's initiation.
- Moreover, only 62.7% of respondents indicated they could come up with $2,000 in the event of an unexpected financial need, setting a new series low.
Impact of Economic Sentiment
This alarming data coincides with a recent report from the University of Michigan, which revealed a drop in U.S. consumer sentiment to a level not seen in over two years, attributed to uncertainties surrounding President Trump’s economic policies.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.