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Millions refused credit due to poor ratings

Millions refused credit due to poor ratings

Category: Loans

Updated: 28/05/2013
First Published: 28/05/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Almost seven million people were refused financial credit over the past twelve months as a result of having unsatisfactory credit histories.

According to the Debt Advisory Centre, 1.6 million consumers were denied personal loans, whilst 1.2 million credit card applications were declined due to poor credit ratings.

A massive 9 million people stated that they had not attempted to borrow money as they were worried they would not pass the necessary credit checks.

Young people were found to be the most worried about their credit ratings, with a quarter of 18 to 24 year olds claiming they had not applied for any borrowing due to concerns that their credit history was not good enough, compared with just 11% of people aged 55 and over.

Ian Williams of the Debt Advisory Centre, said: "Credit ratings are a major part of modern life. These figures show just how much a poor rating can get in the way, and not just when you're applying for credit.

"While it's good that people are wary of damaging their credit rating even further, what's even more important is taking steps to improve it: for example, avoiding further borrowing, trying to clear the debts that you can, and setting up Direct Debits to make sure the payments go out on time," he said.

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