Millions Rejected for Credit Cards
Almost 4.5 million Brits were refused credit in the last year, new research shows, with Londoners experiencing the highest rejection rate.
Being rejected for credit has a damaging affect on a person’s credit profile, meaning the 25 percent of UK credit applicants who were refused are in a worst position than when they started, Moneysupermarket revealed.
Those from the West Midlands were shown to be the most likely to be accepted for credit with an 85 percent success rate. Londoners only had a 62 percent acceptance rate in comparison.
Men were shown to be rejected more than women with 28 percent refused for a credit card or loan, compared to 23 percent of females.
Younger people are also more likely to be denied credit with over a third of 18-34 year-old applicants being turned down, this is compared to 12 percent of those over 55 years old.
“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,” said Kevin Mountford, Moneysupermarket’s head of banking.
“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.”
Best Bad Credit Credit Cards
If you have been refused a credit card you could look to take out a prepaid credit card as a suitable alternative.
Most people are eligible for a prepaid credit card, so they are suitable for those with a bad credit history.
A bad credit credit card does not have an overdraft facility, so the card user can only spend the amount of money they loaded onto it.
This helps you build up a better and more secure financial grounding for when you want to reapply for credit. The card also means you can spend money online.