Declined Applications For Financial Products
October 19, 2008
According to research carried out by MoneyExpert.com, around 5 million applications for new credit cards and loans have been rejected by lenders over the last six months. The figures work out that about 56 % of the population of the U.K has applied for such financial products in the last six months.
Of this number 13% have been rejected for credit card applications and a further 6% rejected for unsecured loans. For the people who have luckily been accepted for cards they have seen their application being approved but at a much high rate than they would have saw 18 months ago.
The most likely people to get rejected are people who fall into the age bracket of 25 to 34 which has saw a ratio of about 1 in every 5 people being rejected for a credit card and 1 in every 10 failing to get a loan in the last six months.
The Director of MoneyExpert.com, Sean Gardner, said ” The banking crisis means lenders are terrified to lend to almost anyone.”
” 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.”
” Anyone whose credit record is even remotely suspect risks rejection. Banks want to recover their bad debts and they don’t want to create more of the same.”
He also added ” It makes sense for lenders – and even borrowers – to reject applications from people with debt problems or who have already made multiple applications.”
” People who know they don’t have a perfect credit record shouldn’t apply for the top products. Lenders just won’t accept your application, particularly in the current climate. Make sure you apply for a product that is suitable for you and that you only try to borrow what you can afford to repay.”
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