Many people expect to be turned down for credit as lenders tighten their criteria, according to Experian.
Applying for a credit card or loan is proving stressful for many consumers, a study from Experian has shown.
According to the credit reports provider, many people worry that they will be turned down for credit before they approach a provider. Almost one in four told Experian researchers that they felt they would be refused a loan of less than £1,000, while 42 per cent and 66 per cent expected a rejection for applications of £10,000 and £30,000 respectively.
Many credit card and loan firms have significantly tightened their lending criteria since the beginning of the credit crunch, due to the general market volatility and uncertain economic outlook. Consumers are also displaying risky behaviour, with just 26 per cent found by Experian to be able to accurately state how much they have left to pay on their credit cards and loans.
James Jones, consumer education manager at Experian, advised: "Better [credit card and loan] deals are becoming more difficult to find. Lenders are using credit histories not only to decide whether to say yes or no to people, but also to decide what rates to charge."
Recent figures released by charity Credit Action show that interest repayments for credit have increased in the UK by £94.3 billion over the past 12 months.
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