Research Highlights Scale of UK Credit Rejection

MORE than a quarter of UK credit applicants were rejected for a credit card or a personal loan in the last 12 months, according to research from a price-comparison site.

A survey of 2007 UK adults, commissioned by Moneysupermarket.com and carried out by Opinium Research, found that 25 per cent had been turned away for credit.

According to Opinium’s figures, the total number of adults in the UK is over 49 million. Moneysupermarket research says that 36% (17.6 million) of these people have applied for a credit card or loan, and 25% (4.4 million ) of those have been rejected for credit.

As being rejected for credit is potentially damaging to an applicant’s credit profile, Moneysupermarket says that 4.5 million people have risked lowering their credit score by making unsuccessful credit card or personal loan applications.

The research shows that people living in the West Midlands were most likely to be accepted for credit, with an 85% success rate when applying for credit.

Londoners, on the other hand, have only a 62% chance of being accepted for credit.

The infographic visualizes credit rejection rates across the UK, broken down by region.

According to the figures, men are more likely to be turned away for credit than women. 28% of men who took part in the survey admitted to being rejected, compared to 23% of women.

Predictably, younger applicants are more likely to face credit rejection, with over a third of 18-34-year-olds surveyed admitting they had been rejected for a credit card or personal loan.

Just 12% of the over-55’s, by comparison, said they had been rejected.

Kevin Mountford, head of banking at Moneysupermarket.com, said: “It’s worrying to see such a huge number of people being rejected for credit cards or loans, especially as you could avoid being declined by taking the time to research the best card for their needs.  Rejected applications can have a damaging affect on your credit score and further reduce the chances of you qualifying for another credit product in the future.”

He added: “Because of this, moneysupermarket.com has introduced a credit profiling tool that helps people search and apply for the most suitable credit card for their personal circumstances. It means people can shop around for the right card for them without negatively affecting their credit file.”