25 June 2009
A number of the country's credit card holders are not able to pay off their debts by not being offered balance transfer deals, according to new findings.
Research conducted by uSwitch.com shows two million people have been rejected for such deals over the last 12 months, representing 57% of all credit card rejections.
Customers are then left to fork out £535 million in interest payments over the next year, due to their inability to switch to another provider.
Rejected credit applications appear on credit reports, warned Louise Bond, Personal Finance Expert at uSwitch.com, which will have a negative impact on people's scores.
"With this in mind, it's important to check your report before applying for products to make sure you stand a good chance of being accepted - constantly reapplying to different suppliers will make the situation worse," she added.
Martyn Saville, Senior Researcher at Which?, recently suggested that credit card companies were failing to monitor their rates for existing customers.