Credit card companies are rejecting 18,000 applications every day as they continue to tighten up on risky lending, according to research from MoneyExpert.com.
More than 3.24 million credit card
applicants have been rejected in the past six months, providing further evidence that the UK's love affair with credit has come to a painful end for consumers who are struggling to make ends meet in the current financial climate of rising food prices and energy costs
MoneyExpert has voiced concern that these millions of rejected applicants – more than for any other form of credit – are harming their credit record, and suggests that each potential credit card customer get a free credit report
and consider the strength of their credit rating before applying.
The UK's biggest credit rating agency said that increasing levels of debt and the lack of liquidity is hitting lenders as well as consumers and many are reforming their rules to reflect current economic conditions.
Sean Gardner of MoneyExpert.com, 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 financial products including a mortgage."
Young adults are the most likely age group to be rejected for credit, with 10 per cent of those aged 25 to 34 being turned down in the last six months. Those approaching retirement are the least likely to be rejected, with just three per cent having their applications rejected in the same time period.
Mr Gardner concluded: "Given the turmoil in the mortgage markets the options are running out for people with problem debts. They need to take control of their borrowing and crucially to reduce their debts."
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