The financial sector and climate in the UK is still extremely fragile, and for the millions of people hoping to get a loan or credit card things have become increasingly difficult. Research has recently been carried out into the level of rejection that consumers are experiencing when it comes to getting finance such as credit cards and loans.
The research was carried out by moneysupermarket.com and showed that over the past year over 25 percent of applicants in the UK had been turned down for a loan or credit card, which equates to around 4.5 million consumers. Officials are concerned that this could result in millions of people causing further damage to what may be their already damaged credit files, and this could further reduce their chances of getting affordable finance in the future.
Consumers are being advised to familiarise themselves with their credit file prior to applying for any form of credit, as the state of the credit file and history is one of the things that lenders will look at when deciding whether to grant a loan or credit card. This is why it is important for all consumers to make sure that their credit file is in a decent state before applying for credit.
An official from Moneysupermarket.com said: “The decision to borrow should never be taken lightly, but credit cards still have a huge role to play in the nation’s finances if used correctly. However, it’s worrying to see such a huge number of people being rejected for credit cards or loans, especially as you could avoid being declined by taking the time to research the best card for their needs. Rejected applications can have a damaging affect on your credit score and further reduce the chances of you qualifying for another credit product in the future.”
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