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The global banking crisis forced United Kingdom lenders to reject 5 million credit card and personal-loan applications over the past six months, suggest the results of a survey research firm YouGov PLC conducted for UK financial Web site moneyexpert.com. YouGov interviewed 2,157 Brits online between 10 Sept. and 12 Sept. Moneyexpert.com says approximately 56% (25.8 million) of consumers in Great Britain applied for a credit card or personal loan during the past six months. Thirteen percent of survey respondents had a credit card application rejected, and 6% had personal-loan applications declined. Moneyexpert.com says consumers approved for credit cards and personal loans are paying higher charges for borrowing money than they were 18 months ago. The average annual percentage rate on credit card purchases increased from 16.77% in March 2007 to 17.46% at the end of September, the company says. The average rate on a £5,000 personal loan increased to 15.3% from 8.6% during the same period, according to moneyexpert.com. "The banking crisis means lenders are terrified to lend to almost anyone," Sean Gardner, director of moneyexpert.com, said in a statement. "Anyone whose credit record is even remotely suspect risks rejection." The Web site is warning consumers not to apply for multiple credit cards.
