Uh Oh: More Americans Turned Down For Loans

• The likelihood of Americans being denied credit has increased as a result of both high-interest rates and a cautious approach by lenders, according to a recent survey conducted by the Federal Reserve.
• The survey, which is published every four months, revealed that the rejection rate for loan applicants surged to 21.8% during the 12 months leading up to June, marking the highest level in five years. Furthermore, overall credit applications reached their lowest point since October 2020.
• Comparing the latest survey to the previous edition published in February, before the collapse of lenders such as Silicon Valley Bank, the rejection rate has risen from 17.3% to the current figure. This increase has been observed across various age groups, with the highest impact felt among individuals with credit scores below 680.

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Tagged: Economy