Days of easy credit over claims research

Refusals for new credit cards and personal loans are soaring as banks attempt to stem rising levels of bad personal debt, research has claimed.

Around 3.5 million applications for credit cards, personal loans and mortgages have been turned down over the past year, said Money Expert.

Credit cards have proved most sensitive to risk, with 1.7 million applications refused, while 1.5 million personal loan applications were turned down.

"The days of easy credit are drawing to an end for many people," claimed Money Expert chief executive Sean Gardner.

Credit-hungry Britons refuse to be rebuffed so easily however, with three-fifths of respondents saying that they would apply again.

Mr Gardner said that it was important to understand your credit rating before making repeated applications.

"It is important to understand your credit profile and be realistic about the products that are suitable for you," he said.

"The risk of being declined when you apply for a credit card, loan or mortgage appears to be rising among those applying to the wrong type of lender.

"To avoid disappointment and gain the best deals, people need to apply to the right lenders.

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