The credit gap may be growing wider, as half of adults in the UK are at risk for being denied a credit card, according to the Telegraph.
By law, lenders are allowed to advertise credit rates that only 51 percent of applicants are expected to qualify for, making 25 million people vulnerable to having their credit applications declined.
Those without a credit history are most at risk for being turned down by lenders.
One out of three full-time employees and a third of those with incomes over £50,000 could also be susceptible to credit denial, according to research from Aqua Card.
According to the article, “the most common reasons for people being declined credit are not being a home owner and having opened two or more credit accounts in the previous six months.”
“Finding out that a massive 25 million people are at risk of being declined credit due to a poor credit score is extremely alarming,” says Sarah Willingham, founder of LetsSaveSomeMoney.com. “If you have a damaged credit record and don’t inquire why, you could end up paying more or, at worst, having limited access to credit.”
Information for this post was taken from an article by Emma Wall, personal finance reporter for the Telegraph. Read her original article here.