A quarter of UK credit applications rejected

Thursday, 27 January 2011 03:52

Over the past year, one quarter of credit card and loan applicants have been rejected, according to new research.

The study, conducted by moneysupermarket.com, highlights the need for consumers to understand the factors which influence their credit profile.

This is especially important as unsuccessful applications can have a negative impact on consumers' credit history.

Factors which can influence profiles include paying bills on time and having mobile phone and landline contracts, as these can demonstrate the ability to manage debt.

Meanwhile, being on the electoral register can also prove to be a positive influence.

And by carefully investigating which products they are more likely to be accepted for, people have the potential to sidestep potential rejections.

"The decision to borrow should never be taken lightly, but credit cards still have a huge role to play in the nation's finances if used correctly," comments head of banking at moneysupermarket.com Kevin Mountford.

Mortgages are another area in which consumers could need to exercise care, as a recent study by consumer watchdog Which? has found that these come with more charges than ever before.

Use the Myfinances.co.uk comparison tools to find the best deal on a personal loan or credit card
 

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