Posted on March 11th, 2022

A fifth of all those who applied for the most common financial products were refused by providers in 2020, severely affecting consumers’ ability to access basic accounts. 

Almost half of those who were refused mainstream lending in 2020 had never been denied before, according to data from Royal London – as lending criteria on personal loans, credit cards and overdrafts tightened.  

Since the virus hit in March, 12 per cent of UK adults have applied for a credit card, personal loan, an overdraft or overdraft extension, with credit cards the most popular form of borrowing at 8 per cent.

But with almost one in 10 UK adults applying for benefits during 2020 – almost half for the first time – and 15 per cent of the population still with less than £500 in savings despite nationwide efforts to set cash aside, borrowing may feel like the only option available to many.

And while responsible lending is a crucial component in helping people out of problem debt, anecdotal evidence suggests the measures have hit those trying to manage their otherwise sustainable finances hardest.

Original article: https://www.independent.co.uk/money/refused-credit-application-declined-overdraft-loan-credit-card-debt-b1779858.html