'Rate tarts' rejected by credit card providers

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Re: 'Rate tarts' rejected by credit card providers

'Rate tarts' rejected by credit card providers

Thursday, 25 Jun 2009 06:00

Over one in ten consumers have had a credit card application rejected in the last year as providers tighten their criteria.

With almost two million consumers rejected for balance transfer deals in the last year, 'rate tarts' have been hard hit and £3.5 billion of credit card debt has been left on interest bearing credit cards, according to research from uSwitch.com extrapolating the findings of their poll.

Louise Bond, personal finance expert at uSwitch.com, said: "We can't ignore the fact that the country is in economic turmoil - a situation which has been catalysed by bad consumer credit.

"The knock-on effect for credit card customers is that those with a less than perfect credit history could find themselves being turned down for the next best 0% deal, forcing them to pay interest."

Being rejected for a credit card will also negatively affect your credit score, uSwitch.com added.

"If you can't get another credit card, think about using a 0% overdraft, an unsecured personal loan or, if there are no other options and debt is getting out of control, speak to your provider or seek professional advice," Ms Bond adds.

If you are thinking of applying for a new credit card, check the terms carefully to ensure you meet the criteria, such as a salary level or the time you have lived at your current address.

In addition, check your credit record to make sure you are on the electoral role and all your details are correct.