‘Lenders get tough on credit cards’
With bad debt within the UK having steadily risen over the past few years, increasing numbers of credit card applications are being rejected by lenders, a recent study has revealed.
According to statistics released by the financial comparison website MoneyExpert.com, around 2.8 million card applications were rejected over the course of the last six months, equivalent to 15,555 per day.
About Six per cent of people across the country have seen lenders reject their applications over the past six months, with ten per cent being denied a range of financial products, the research also found.
Commenting on the statistics, Sean Gardner, the website’s chief executive, said: “Credit card companies have been badly burnt with bad debts and are putting the shutters up in response by turning down more and more applications.”
He added, however, that many borrowers who genuinely need access to credit could potentially be hit by this latest trend.
Young people are the most likely to be affected by the lenders’ changed attitudes, with 11 per cent of those aged between 18 to 24 having been denied a card during the last six months, while just three per cent of over-55s have seen their applications rejected.
People struggling with credit card repayments to several creditors may wish to tie up their outgoings into one package with a debt consolidation loan.
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