Credit demand among US consumers decreases in 2023
(MENAFN) The Federal Reserve Bank of New York released a report on Monday indicating a decline in the demand for credit among American consumers in 2023.
This year, the average credit application rate stood at 41.2 percent, marking a decrease from the 44.8 percent recorded in 2022 and notably falling below the pre-pandemic level of 45.8 percent observed in 2019.
Furthermore, the report highlighted an uptick in reported credit rejection rates among applicants, showing an increase of 2.1 percentage points to reach 20.1 percent in 2023, compared to the 18.0 percent figure reported in the previous year.
"Most credit application rates weakened, except for applications for credit card limit increases, which rose," the bank mentioned in its SCE Credit Access Survey, which is assessed every four months.
"Rejection rates on credit applications rose overall but declined for credit card limit extension applications. Rejection rates also declined for new mortgage applications, likely reflecting higher creditworthiness among the smaller group of consumers who applied for new mortgages in 2023," it also mentioned.
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