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Creditfix LB 03-2017

Bad Credit Score Affects Millions

Over a million consumers have had credit applications refused over the past 12 months thanks to a poor credit history.

Of the 3 million plus people that have had a credit card application, personal loan or mortgage refused in the last year, 40 per cent have lost the opportunity thanks to a poor credit score.

Guarantor lender, Buddy Loans, conducted the research to reveal the most common reasons people are being rejected for personal loans, credit cards, mortgages and even mobile phone contracts.

Women were found to be affected most with only 16 per cent of those who applied for credit being accepted, compared to 23 per cent of men.

Former partners can also have an effect on your credit score, with 10 per cent being refused credit because their credit history is linked with an ex.

The 35-44 year-olds have been found to suffer most as an age group, with 26 per cent of this group being refused credit. The 18-24 and 45-54 age groups either side had a credit failure rate of 20 per cent.

The research of 1,000 UK adults even showed that 17 per cent were refused credit simply for having no previous credit history, rather than a bad record.

Director of Buddy Loans, Guy Mackenzie, commented: ‘Having a poor credit history is not an automatic indictor that you can?t afford borrow money, so it?s disheartening to see that so many are being point-blank refused, often when they are most in need of a leg-up to get their finances back on track.

‘While the industry has a responsibility to ensure people don?t take on debt that they can?t afford, it?s also important that those who can afford credit are able to make home improvements, buy a car or consolidate their existing lending.

‘The research also shows the importance of understanding, and checking, your credit score, as it can have a big impact on your ability to borrow and the rates at which you can borrow.’

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