Warning over credit card applications

Financial advice website moneysupermarket.com states that people seeking to transfer their credit card debt could risk ending up paying higher interest rates if they are refused.

“Our research shows Brits face a bit of a gauntlet when dealing with the credit card market,” said Robert Kenley, head of credit cards at moneysupermarket.com.

“When consumers are finally accepted for a credit card they are often only granted a higher standard rate than they initially set out to get – this can be for a variety of reasons, but is often due to lenders offering their headline rates to lowest risk customers and higher rates to those considered higher risk.”

According to the figures, over ten million people – nearly a quarter of the population – have had an application for a credit card refused.

This will damage credit ratings, which also affect the likelihood of gaining a loan at a favourable rate.

“People need to realise that they may already have a poor credit rating and they should take advice before committing themselves to more debt,” added Sean Gardner, chief executive of MoneyExpert.com.

track