Credit cards have become a feature of modern society, convenient to use and offering various benefits, many of us could not imagine being without one. However, credit card acceptance and rejection rates do vary throughout the country with many factors coming into play in the decision making process.
In addition, how you apply and the type of credit card you apply for can also make a significant difference to your chance of being accepted. This article will address these issues and provide some useful information around credit card acceptance and rejection and will begin by looking at the situation in London.
East London has the fifth highest number of credit applications in the UK while West London has the lowest number of applications in the UK. South West London has the third lowest number of applications country-wide, and South East London has the worst acceptance rate in the capital at 41.3%. Conversely, West London has the highest acceptance in London at 43%. If you want to know how your area scores, you can use the Totally Money credit map.
Each region is unique with big variations in unemployment, cost of living, home ownership and indebtedness, creating a postcode lottery. Many struggling with finances seek credit leading to a close correlation between people making the most credit card applications and rejections. It is worth noting that over the past year 65% of applicants for credit cards were rejected, that equates to five million. However, residents in the South of England stand a greater chance of acceptance than the Northern regions, occupying nine of the top ten areas for acceptance of consumer credit.
Credit cards have numerous advantages and when they are used responsibly they can have a significant positive impact on your credit rating. However, it is worth noting that unsuccessful applications can negatively impact upon your credit rating.
The type of card you apply for makes a difference to your chances of acceptance, by using the Totally Money comparison tools you can ‘check your eligibility’ which will give you a percentage chance of being accepted. Using a tool like this typically increases your chances of acceptance by 250%.
