57% of UK adults ‘deemed not to be creditworthy’

Some 57 per cent of UK adults may be declined credit by mainstream lenders.

This is the headline finding of the Mind the Credit Gap report, which h…

Some 57 per cent of UK adults may be declined credit by mainstream lenders.

This is the headline finding of the Mind the Credit Gap report, which has been commissioned by aqua credit cards. It highlights how many people are in a perilous financial position, which means they may turn to less attractive means of securing money, such as payday lenders.

The study discovered 69 per cent of women are in trouble of being refused credit, while 82 per cent of 18 to 24-year-olds would fail a typical check. Because so many people in these demographics are failing to meet the criteria that lenders are looking for, they could be struggling to get by.

Worryingly, 79 per cent of people do not know what their credit score is, while 85 per cent of those who have been rejected do not bother to find out the reason why.

Sarah Willingham, founder of letssavesomemoney said: "Finding out that a massive 25 million people are at risk of being declined credit due to a poor credit score is extremely alarming.

"The Mind the Credit Gap report … demonstrates the importance of understanding your credit score and how it affects your ability to access financial products, but also how to access the best deals and rates on other products and services."

She added anyone who has a damaged credit record could end up with limited access to credit in the future if they do not take steps to find out the cause of the issue.

People struggling to make ends meet should look to take advantage of a debt consolidation loan, instead of sourcing additional credit, while they should not bury their head in the sand when it comes to this issue, as doing so will only allow the debt problem to escalate.

Instead, consumers would be much better served by taking debt advice and looking to bring their financial situation under control.

By Joe White

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