Home Ownership Increasingly Out of Reach as Credit Rejections Rise, Analysis Shows

‘if credit becomes more and more exclusive, what does this mean for Americans’ hopes of achieving their financial goals?’ Bankrate analyst Sarah Foster said.

Your credit score determines your ability to obtain credit and potentially be approved for loans. REDPIXEL.PL/ShutterStock

Many pillars of Americans’ prosperity, such as owning a home, are slipping out of reach, as loan rejections become increasingly common, a new study finds. 

Since the Federal Reserve began raising interest rates in March 2022, about half of those who applied for credit were denied, according to a newly released survey of borrowers and lenders by Bankrate, a financial analytics firm. Conversely, 41 percent of applicants were approved for all the credit lines they sought.