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One in six households were denied credit between August and November last year, according to Atlanta-based Synergistics Research Corp. survey results. Synergistics conducted the online survey in November and December, and it based its findings on the responses of 1,010 households that have Internet access. Nearly one-fourth of the responding households earning $35,000 to $50,000 annually reported being turned down for credit, which could include card, auto, mortgage or home-equity loans. Some 26% of households earning less than $35,000 were denied credit, the survey found. "The data speaks to the lower-income households and how disproportionately they are feeling the negative impact of this credit crisis," William H. McCracken, Synergistics CEO, tells CardLine sister publication Collections & Credit Risk. However, it was not just lower-income households being turned down. More than 10% of households earning $75,000 to $100,000 and 7% of households with annual incomes exceeding $100,000 said they were denied credit. "Credit-underwriting standards have just been tightened to the point where previously this group of affluent individuals that banks compete for so greatly are now … essentially being told 'we don't want to serve your credit needs,'" McCracken says. "When the economy recovers, many of these banks may rue having offended some of these affluent and desirable customers." The results are part of a study report "Financial Insights: The Consumer Credit Crisis" that Synergistics plans to release later this month.
