Credit cards rejected

1/05/2008

A number of Banks have rejected over 18,000 credit card applications simply to prevent debt problems, a further investigation was carried out by MoneyExpert.com.

Nearly 3.24million credit card applications have been rejected throughout the last six months.

Barclaycard have rejected up to 50 per cent of applicants as they feel it has caused only debt problems.

MoneyExpert.com found that around one in 14 people had a card application rejected since the start of 2008.

Sean Gardner from MoneyExpert.com spoke further: 'People with debts who thought they could keep shuffling their cards to stay ahead are running into trouble. Card applicants need to be confident that they are going to be accepted in the current lending environment. A credit rejection could have knock-on effects for borrowers when it comes to taking out all kinds of financial products including a mortgage.’

Research published towards the start of April found that 1.8m people have had their credit card limit cut.

A final study published last week showed that the average interest rate on UK credit cards had jumped from 14.9% to 16.9% in the last two years.