Auto loan rejection rate nearly doubles in 2019: Fed survey
Application rates for auto loans decline by 3% while mortgage application rates climb by nearly 2%.
U.S. households’ credit experiences and expectations remained fairly stable in 2019 compared to 2018, but the rejection rate for auto loans nearly doubled from 4.5% in October 2018 to 8.1% in October 2019, according to the Survey of Consumer Expectations Credit Access Survey released Dec. 16 by the Federal Reserve Bank of New York.
The overall reported rejection rate for auto loans increased from 6.1% on average in 2018 to 7.1% in 2019, the survey reported, which provides information on consumers’ experiences with, and expectations about, credit demand and credit access,
What’s more, application rates for auto loans declined by 2.9% to 12.6% on average in 2019 from 2018. This decline was driven by respondents with credit scores lower than 680, according to the survey.
However, the reported rejection rates for credit cards, mortgages and mortgage refinance applications declined compared to 2018, while the reported rejection rate for credit card limit increases remained steady in 2019, increasing only by 0.1% to 30.8% from last year’s average.
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