Almost 3 million credit card rejections

Almost three million credit card applications have been turned down in the last six months as providers get tough over bad debt, it was claimed today.

Research found that as many as 2.8 million attempts to obtain a credit card had been rejected over the last half year – working out at around 15,555 a day.

MoneyExpert.com warned that some people who genuinely need access to credit may have been excluded in the crackdown by providers.

Banks have been hit by rising bad debt since last year as more and more people renege on repayments on loans and credit cards, the price comparisons website said.

A poll of 2,300 UK adults revealed that around 6% of people had seen their credit card application turned down in the last six months.

One in 10 people in total reported having been rejected for a range of financial products.

Sean Gardner, chief executive of MoneyExpert.com, 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.

"Anyone with debt problems who is hoping for an easy way out by taking out another credit card is liable to find that they will be turned down."

He added: "It is entirely sensible for credit card companies to reject applications from people with debt problems or who look as if they have already borrowed enough.

"Rising interest rates mean it is harder to service debts and people should not be encouraged to get deeper into debt.

"The concern, however, must be that some people who genuinely need access to credit are being excluded in the general clampdown."

People aged between 25 and 35 were found to be the most likely to have card applications turned down, with 11% having been rejected.

This compared with 8% of 18 to 24-year-olds and just 3% of the 55 and above age group.

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