Credit refusal rate rose in 2007f

The rate at which would-be borrowers in the UK were refused credit applications increased over the course of last year, it has been revealed.

According to research carried out by Equifax, there was 16 per cent more people turned down for credit last year than was the case in 2006.

Equifax provides credit record services and a poll of its customers indicated that almost two-thirds of people were refused the option of taking on credit card debt or a personal loan.

“What our survey supports is industry expectations that lending criteria would be tightened following the credit crunch mid 2007,” said Neil Munroe, external affairs director at Equifax.

“Clearly this presents a challenge for consumers looking to get new credit in the early part of 2008.”

A spokesperson for the Consumer Credit Counselling Service recently urged British consumers with outstanding credit card debt to take steps to reduce the amounts they owe as quickly as possible.