There have been more than half a million credit card rejections each month for the last six months, according to figures released by financial website moneyexpert.com.
Credit card companies have denied on average over 3.24 million applications over the past six months, as credit continues to be harder to obtain.
Its figures show that around one in 14 people (7 per cent of adults) have seen card applications rejected during the past six months, stating that they have seen more people rejected for credit cards than for any other financial product.
MoneyExpert’s Sean Gardner says: “People with debts who thought they could keep shuffling their cards to stay ahead are now running into trouble.
“Given the turmoil in the mortgage markets the options are running out for people with problem debts. They need to take control of their borrowing and crucially to reduce their debts.”
Chiltern’s Nathan Gladwell says: “When applying for credit cards customers need to be confident that they’re going to be accepted, as a rejection could negatively affect credit reports.
“This could have serious knock-on effects for borrowers when it comes to taking out other financial products – including mortgages – as lenders are making it harder to borrow money for people with less-than-perfect credit histories.
“If people are struggling to obtain credit then alternative options, like informal debt management, may assist them in the short-term – until they have demonstrated to lenders that they can control their finances.”