Application rates for most types of credit declined in October compared to the second quarter of 2017 and the share of individuals who were too discouraged to apply for credit despite needing it is at a five-year low, according to data released today by the Federal Reserve Board of New York.
The report is based off a survey that is conducted alongside the bank’s Survey of Consumer Expectations report.
Individuals who applied for credit were also accepted at a higher rate than in previous quarters. The rejection rate across all types of credit, including credit cards, auto loans, and mortgages, declined in the third quarter.
While more individuals expect to need $2,000 to cover some sort of unexpected increase, the number of people who said they would be able to come up with that amount also increased, according to the report. The percentage of people who said they could find a way to come up with that amount was 69.5% in October, up from 65.9% a year ago.
Only 23.2% of individuals think they would be rejected for a credit card, down from 29% a year ago.
Full details about the results are available here.
