Credit card providers reject 18,000 applicants daily

by Gill Montia

Story link: Credit card providers reject 18,000 applicants daily

Fears of rising levels of personal debt are leading credit card companies to reject 18,000 applications from would-be account holders, each day.

According to research from financial website, MoneyExpert.com, credit card companies are continuing to tighten their criteria, with the result that over 3.24 million credit card applicants have been rejected in the past six months.

Barclaycard turned down up to half of all applications during the period and many card issuing companies are discouraging new business by reducing spending limits and increasing charges and interest rates.

The research shows a strong age bias, with 10% of those aged 25 to 34 unsuccessful, compared with 3% of people nearing retirement age.

MoneyExpert and others are recommending that consumers check their credit ratings before applying for a card because a rejection can further sully a poor credit report. Checks can easily be obtained free online.

The high number of rejections is just one aspect of the end of a period of easy credit that lasted several years in the UK.

Unfortunately, the more rigorous approach comes at a time when rising household costs have led more and more Britons to use their credit cards to pay for essentials, such as food and transport.