You are here: Home - Credit Cards & Loans -

18,000 credit card applications rejected daily

0
Written by:
21/04/2008

Credit card companies have turned down applications from more than 3.24 million people in the past six months, according to MoneyExpert.

The comparison site’s research estimates that as many as 18,000 applications are being rejected by card companies every day, providing more evidence that the UK’s credit binge is turning into a starvation diet.

With such a high number of applications currently being rejected, MoneyExpert is warning all potential applicants to consider the strength of their credit rating before calling a card company.

MoneyExpert says increasing levels of bad debt hitting banks as well as the current credit crunch has prompted many firms to tighten rules on new applications. The figures show around 7% of adults have been card rejects during the past six months. MoneyExpert says more people have been rejected for credit cards than for any other financial product.

Sean Gardner, spokesperson for MoneyExpert, said: “For years borrowers have had the upper hand in the credit card game but the rules have now changed. People with debts who thought they could keep shuffling their cards to stay ahead are now running into trouble.

“Card applicants need to be confident that they are going to be accepted in the current lending environment as a rejection could lead to black marks on credit reports. A credit rejection could have knock on effects for borrowers when it comes to taking out all kinds of financial products including a mortgage.”

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Moneyfacts warns of instant access perils

Comparison site Moneyfacts says savers should be aware of the terms and conditions of instant access accounts as withdrawals may...

Close