Many consumers are reluctant to apply for credit as they fear that unsuccessful applications will tarnish their record and make getting loans, mortgages and credit cards more difficult in future.
This is according to Confused.com, which found that almost 40 per cent of people polled would not apply for a credit card as a result of such concerns.
This was despite the fact that 12 per cent of respondents reported that their credit score has improved over the last year.
Head of credit cards at Confused.com Joanne Garcia suggested that people aged 22 to 30 are the most worried about the potential of a black mark on their credit rating.
She added: “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.”
Research released recently by PricewaterhouseCoopers revealed that the number of credit cards in circulation in the UK fell by eight per cent over the last 12 months.
