Nine percent of Americans fear credit rejection

A recent survey by the New York Federal Reserve shows that nearly 9% of Americans avoided applying for credit in February due to fears of rejection. This marks the highest level of discouraged borrowers since the survey began in 2013. The survey also revealed that 46.7% of respondents expect it to be harder to obtain credit in the coming year, the highest since June 2024. The perceived likelihood of rejection for auto loans reached a record 33.5%. Consumer sentiment has dropped to a two-year low, with concerns about economic conditions and the impact of trade policies. Retail sales growth was disappointing in February, rising only 0.2%, indicating financial distress among consumers.