LONDON, April 18, 2011 /PRNewswire/ -- Millions are struggling to manage their money as banks make it harder for Brits to borrow.
The new Credit Confidential Credit Index (CCCI) released today reveals it is now 10 per cent more difficult for consumers to get a loan, credit card, mortgage or even a store card than it was 12 months ago, putting real pressure on many hard working Brits to make ends meet.
For those who didn't manage to get credit in the last 12 months, 25 per cent had to go without their purchase, 22 per cent borrowed from someone else and 20 per cent were forced to cut back on essential spending elsewhere in order to get hold of the cash they needed.
Some 916,000 Brits actually opted to pay off some of their debts last year as 56 per cent reported it to be more difficult to access lending. And those who need it most are finding it hardest to get hold of cash, with seven in ten people earning lower-middle wages reporting that it was more difficult than this time last year.
But in worrying signs for the country's troubled high street retailers, consumers don't expect the situation to get any better, with 56 per cent believing the chances of them getting new credit such as cash or loans in the next 12 months are set to worsen.
Paul Lewis from Credit Confidential said:
"Getting access to affordable credit has never been more important for consumers, but we know people are feeling the squeeze as banks are lending more rarely, or at higher rates. And as you leave a footprint on your credit report every time you are refused a loan, credit card or even a mobile phone contract, there is a risk that being refused now will make it difficult to access credit in the future."
"People don't have to wait until they are refused credit by a bank to take control of their situation. By being aware of their own credit rating consumers can ensure they position themselves to get the best deals around."
The Credit Confidential Credit Index is being issued to launch Credit Confidential, a new online personal credit checking service for individual consumers, which will allow people to keep on top of their credit history and credit rating.
SOURCE Credit Confidential