5 million people were declined for credit last year. Many for good reason; 1/4 of applicants were in financial difficulty. 10% were ‘just surviving’.
However 42% were what the Financial Conduct Authority calls ‘financially resilient’. These applicants have savings, insurance and a pension. 7% had assets of £50,000. 8% earn more than £50,000.
One in five are put off applying for credit, because they thought their application would be rejected.
People are missing out. Lenders are losing income.
Read more about growing your loan book using credit scoring and affordability at the NestEgg blog.