July 21, 2016 by Lisa Brammer
The Federal Reserve Bank of New York conducts a Survey of Consumer Expectations (SCE) every four months. In their latest SCE Credit Access survey which was conducted last month in June, panelists were asked about their expectations and experiences regarding credit demand and access during the past 12 months.
The Federal Reserve Bank released the results of their survey in a press release and it is mostly good news: “The release shows an improvement in consumers’ experiences in the credit market compared to the February release, with a decline in the proportion of “discouraged” and “rejected” consumers.”
Application rates for credit cards increased and application rejection rates for all credit types (except housing related) decreased to an almost all time low, so that’s all well and good, but respondents of the poll were somewhat cynical when asked about future approval rates.
The average perceived likelihood of a credit application being rejected rose for almost all types of credit except requests for credit card limit increases. Most of the pessimism centered on expected rejection rates for mortgage applications which went up almost 5 percentage points since October of 2015.
Fortunately, the survey also reported that the percentage of respondents who actually needed credit, but were too discouraged to apply for it decreased to the lowest levels seen since the survey began in October of 2013.
Founded in 1950, United Credit Service, Inc. is a full service, licensed revenue cycle management and debt collection agency in Wisconsin providing effective, customized one on one management and recovery solutions for our business partners. Visit our website at http://www.unitedcreditservice.com, call 877-723-2902 or check out our YouTube video.