Are you having an easier time getting a credit card, personal loan, auto loan or mortgage lately? While consumer debt has reached an all-time high, people don't believe that they're getting credit any easier.
In fact, only 1 in 9 people feel that they are having an easier time getting credit. Even Trump voters, who still support many of the President's policies, are concerned; less than 1 in 4 feel they are having an easier time getting credit under President Trump's economic policies than they were previously. In an exclusive MoneyTips online survey conducted in June, 466 Americans were asked whether they agreed or disagreed with the following statement:
Overall, less than 1 in 9 (10.5%) agreed to some extent, with just 4.7% agreeing strongly. But more than 1 in 3 (35.2%) disagreed, including 23.2% who disagreed strongly. The majority neither agreed nor disagreed.
Lyn Alden, who provides market research to individual investors and financial professionals with a focus on income-generating investments, agrees that credit card approvals are tightening. "Credit card loan losses hit a low in 2015 and 2016, and have been rising in 2017. Consumers are having a bit more trouble making the payments on their credit card debt than they were a year ago, leading to delinquencies." The founder of Lyn Alden Investment Strategy also looked at charge-off rates, the percentage of consumers whose unpaid balances credit card companies are unable to collect. "Within this past year, the net charge-off rate of virtually all credit card issuers has increased. As an investor in credit card companies and a public writer about them, I listen to their earnings calls, and many CEOs are referring to this as 'normalization' away from an unusually low period of charge-off rates, and saying they are tightening credit a bit at their firms so that the increase does not continue."
When we examined which Presidential candidate respondents voted for, we were surprised by the results.
Among the people who didn't vote for Trump -- those who supported Hillary Clinton, a third-party candidate, or didn't vote at all -- just over 3% (3.3%) felt that the President had made getting credit easier, while more than half (51%) disagreed to some extent. But even among the Trump voters, fewer than 1 in 4 (23.8%) felt that the president had made getting credit easier. A few of the rest disagreed (6.1%), but a majority neither agreed nor disagreed (70.1%).
When we looked at age groups, we found that younger people disagreed more with the statement.
Among those under 30, more than 44% (44.1%) disagreed. The percentages tended to drop as the ages increased, with only 22.6% of the oldest group, 70+, disagreeing.
Says Dr. Michael Zey, Professor of Management at Montclair State University's Feliciano School of Business in New Jersey, "It might be a bit early to assess President Trump's economic policies' impact on the ease of acquiring credit. During his first months in office, Trump has taken executive actions to deregulate many industries and encourage US-based jobs, and during that time, the US has experienced steady jobs growth, a rising stock market, exploding corporate profits and robust GDP numbers during that period. But Congress has yet to pass Trump's tax reform package, which includes slashing tax rates for businesses and individuals and helping business repatriate over 2 trillion dollars sitting offshore. Such actions could lead to more jobs and higher wages for American workers. As more workers move into high-wage full-time career opportunities, expect their creditworthiness to improve."