UK consumers have been prevented for taking out credit cards as their bad credit ratings start to affect their chances of getting credit.
According to research from Equifax, as many as a third of UK credit card applications have been turned down in the last year because the applicant has a poor credit history.
The firm added that in a third of these situations, the applicants weren’t even being told why their applications were being turned down.
Equifax external affairs director, Neil Munroe, advised consumers to check their credit score first, before applying.
He said, “If their application is refused, they should stop applying and ask the lender why.
“In our survey, over 50 per cent of those who were refused a new credit card simply gave up applying – yet if they had checked their credit file they may have found they could do something to improve their chances in the future.”
Equifax advised people applying for credit cards to be aware that credit card providers can often access information about a consumers overdraft, and electoral roll status.
They added that consumers should ask credit card companies why they have been declined when it happens, rather than the 50% of consumers who currently give up applying instead.