According to an article in the daily record (www.dailyrecord.co.uk – 06/11/07) there has been a major increase in the number of people being refused credit cards. This is bad news for people relying on this form of credit.

It states that “Fees and rates are also on the increase as a result of the global credit crunch, according to financial website MoneyExpert.com.” and that “3.27million credit card applications were rejected in the six months to the end of September, almost a fifth more than during the previous six months.”

There are many factors that could have led to this increase however the article explains that “The website believed rising levels of bad debt, as well as the problems in global credit markets, had prompted the squeeze. At the same time, financial information group Moneyfacts.co.uk said that there had been 125 fee and rate increases on credit cards since the beginning of September.”

An alternative to acquiring expensive credit cards could be to consolidate all of your existing debt with a secured loan or by remortgaging your home. This could lower your monthly outgoings and free up some of your income