Borrowers 'rejected by lenders'
Borrowers 'rejected by lenders'
Friday 17th October 2008
Amid high inflation rates, increasing living costs and the possible threat of redundancies caused by the impact of the credit crunch on the UK economy, some 56 per cent of Britons have applied for a financial product in the last six months, it has emerged.
But almost five million applications for new credit cards or personal loans during that period were rejected, according to research by an independent finance website.
Sean Gardner, director of MoneyExpert, said: "Anyone whose credit record is even remotely suspect risks rejection."
Borrowers who have taken out loans to try to repay their debts could in fact be taking on more debt, the study revealed, because lenders are now setting far higher interest charges for loan and credit card users than they were 18 months ago.
Research by moneysupermarket.com recently revealed that one in ten Britons feel their debt problems are spiralling out of control.
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