An estimated 3.5 million people have been turned down for credit during the past year as banks tighten their lending policies.
People applying for a credit card were most likely to be hit by financial firms tightening their rules, with around 1.7 million people having their application refused during the past twelve months. At the same time, around 1.5 million loan applications were rejected and 260,700 mortgage applicants were also turned down, according to financial website moneyexpert.com.
The group warned that lenders were likely to make their policies even tougher going forward if interest rates rise during the coming year.
Research carried out by the group found that 60 percent of people would apply again if they have an application for a credit card or a loan refused, and 12 percent would even reapply to the same lender. The group said consumers often did not understand why they had been turned down for credit, and the only way to find out was to ask the lender who had rejected the application.