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20 October 2020, Sydney, Australia – The fear of getting rejected for a credit card is real, according to Finder, Australia's most visited comparison site.
A nationally representative Finder survey of 7,130 adults found that 8% – equivalent to 1.5 million Australians – have been knocked back when applying for plastic.
Of those who have been denied, unsteady income (36%) is the top culprit, followed by having too much debt (22%) and having a bad credit score (21%).
Kate Browne, personal finance expert at Finder, said many Aussies need credit but fear being knocked back.
"With Christmas right around the corner, many Aussies are looking to credit to put presents under the tree and put 2020 behind them.
"A rejection could mean your credit score drops, and it could affect your chances of approval in the future as well as paying a higher interest rate for a loan," Browne said.
Finder found that 1 in 3 (33%) Australians fear they will get knocked back if they apply for personal credit.
The top reasons for this fear are concerns about not having enough money to be approved (59%), thinking they don't have savings (39%) and the fear they will be discriminated against because of their age (38%).
Nearly half of those who have been rejected for a personal credit product have been knocked back for a credit card.
The free Finder app now reveals a user's chance of approval for select credit cards.
The app will review a member's credit score reports, ask a few questions and show them a list of credit cards they are eligible for and their likelihood of approval.
Browne said this feature is not available on any other app in Australia.
"For the first time, Aussies can know their chances of being approved for a credit card before applying.
"This will save time, worry and, most importantly, protect them from a rejection that might impact their credit score," Browne said.
Have you been rejected for any of the following? | |
---|---|
Credit card | 8% |
Personal loan | 6% |
Home loan | 4% |
Car loan | 3% |
Business loan | 3% |
None of the above | 83% |
Source: Finder survey of 7,130 Australians, October 2020
Three ways to improve your credit score
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Disclaimer
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.
About Finder
Every month 2.6 million unique visitors turn to Finder to save money and time, and to make important life choices. We compare virtually everything from credit cards, phone plans, health insurance, travel deals and much more.
Our free service is 100% independently-owned by three Australians: Fred Schebesta, Frank Restuccia and Jeremy Cabral. Since launching in 2006, Finder has helped Aussies find what they need from 1,800+ brands across 100+ categories.
We continue to expand and launch around the globe, and now have offices in Australia, the United States, the United Kingdom, Canada, Poland and the Philippines. For further information visit www.finder.com.au.
12.6 million average unique monthly audience (June- September 2019), Nielsen Digital Panel