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A recent Federal Reserve survey indicates that Americans are facing a growing likelihood of credit application rejections due to a combination of high interest rates and a cautious approach by lenders in the country.The survey reveals that the rejection rate for loan applicants surged to 21.8% during the 12 months leading up to June, marking the highest level in the past five years. Concurrently, the overall volume of credit applications also declined, reaching the lowest point since October 2020.Comparing the data to the previous survey conducted in February, before the collapse of Silicon Valley Bank and other US lenders, the rejection rate has risen significantly from 17.3%. The increase in rejections has been observed across various age groups but has been particularly prominent among individuals with credit scores below 680.In the realm of auto loans, a noteworthy development emerged: for the first time since the survey's inception in 2013, the rejection rate (14.2%) surpassed the application rate (9.1%) over the last twelve months.The survey also found that nearly one-third of auto-loan applicants had anticipated that their loan requests would be rejected, reaching a record high. Furthermore, expectations for loan rejections also increased significantly for new mortgages, mortgage refinancing, and credit-card limit increases.Overall, the data illustrates a challenging credit environment for American borrowers, as the rejection rates climb to their highest levels in years, driven by both economic factors and lender caution.