18,000 credit card applications rejected a day

Around 18,000 credit card applications are rejected a day in the UK as banks tighten their lending criteria.

Over the last six months 3.24 million people – or 14 per cent - have seen applications for credit cards turned down – according to new figures from MoneyExpert.com.

The credit crunch is now hitting credit card borrowers who have in recent years switched between companies' introductory rates.

"People with debts who thought they could keep shuffling their cards to stay ahead are now running into trouble," said Sean Gardner at MoneyExpert.

“Card applicants need to be confident that they are going to be accepted in the current lending environment as a rejection could lead to black marks on credit reports."

Borrowers are also being warned that repeated credit card applications and rejections will also leave a black mark on credit reports – which will make securing other loans and mortgages harder.

"A credit rejection could have knock-on effects for borrowers when it comes to taking out all kinds financial products including a mortgage," said Mr Gardner.

"Given the turmoil in the mortgage markets the options are running out for people with problem debts. They need to take control of their borrowing and crucially to reduce their debts."

Younger borrowers – aged 25 to 34 – were most likely to face credit card rejection, with ten per cent facing rejection, while those approaching retirement were adjudged to be more creditworthy.

The loss of credit card deals, supports findings from British Retail Consortium (BRC) today, that show cash usage on the high street is growing as economic fears mount.