20% of credit requests 'turned down'

16/10/2008

Around one in five new credit card and personal loan applications are being turned down by providers, MoneyExpert.com has claimed.

According to the financial website, six per cent of total applicants over the past six months - 1.56 million people - had their request for credit turned down.

Moreover, 13 per cent (3.27 million) had their credit card applications rejected.

Taken together, this averages at 27,000 refused credit requests per day over the six-month period.

Sean Gardner, director of MoneyExpert.com, blamed the credit crunch for the trend.

"The banking crisis means lenders are terrified to lend to almost anyone," he said.

"They are battening down the hatches and focusing on getting as much money back as possible. In the current climate lenders are tightening up on already tightened rules for new applications."

Tags; Debt Management and Banking, Credit Card Lifestyle,

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