Loan refusals ‘becoming more common’
People who plan to take out a personal loan in the next few months may end up being disappointed, a debt expert has warned.
Chris Tapp of money education charity Credit Action explained that the impact of the credit crunch had resulted in many lenders taking a more risk-averse stance about who they are prepared to lend money to.
That change of policy has seen the number of successful personal loan applications begin to fall, he continued.
"About half of people now applying for personal loans are being turned down. More people are also being refused for credit cards," explained Mr Tapp.
Consumers are also finding that borrowing is becoming more expensive, as a number of lenders have increased both rates and charges, he added.
A recent market survey by personal finance website Moneyfacts.co.uk revealed that ten per cent of lenders withdrew all their unsecured personal loan products during November.
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