Abacus Daily Debt News

Credit scores concerning to debtors, survey shows

Almost 40 per cent of people are not considering taking out credit cards for fear of tarnishing their credit scores, a new survey has revealed.

According to Confused.com, this trepidation is prevalent despite the fact that 12 per cent of those asked admitted that their scores have actually improved in the last year.

The price comparison site advised people concerned about tarnishing their reputations to help contain the risk by using credit scoring tools that can check which cards are most likely to accept them as customers, without leaving credit footprints.

Those aged between 22 and 30 are the most worried about leaving black marks on their records and head of credit cards at Confused.com Joanne Garcia noted: “The financially savvy young look to the future and see problems about not only getting a credit card or loan, but also to finding a decent mortgage.”

Last month, the Treasury Select Committee was pressed upon by Moneysupermarket.com to create change in the credit search market as shopping around for products is growing tougher as a result of lower acceptance rates and greater apprehension regarding credit scores.

By Sarah Adie

Abacus comment:  Many of our debt management clients have come to us after they’ve been rejected for many loan applications. Many people do not realise multiple applications for credit has a negative imact on credit score. Further unsecured credit is very rarely a long term solution to unaffordable debts.