Interesting chart showing rejection rates by loan type over the past 18 months. It provides an effective way to show the difference between secured (mortgage and auto loans) and unsecured loans (credit cards) and why lenders think differently about them. Here are a few questions to ask students:
1. What loans have the lowest rejection rates (rejection means the lender says “no”)? Why do you think this is the case?
2. What loans have the highest rejection rates (are the hardest to get)? Why do you think this is true?
3. Why do you think it is harder to get a credit card increase than it is to get a credit card?