One million Britons who have been unable to secure personal loans through high street lenders have resorted to using a sub-prime credit card, which charges rates as high as 60 per cent, the Daily Mail reports.
Indeed, credit company Provident Financial has claimed that it has received in excess of 2,700 applications a day for its Vanquis credit card .
The product is specifically targeted at consumers with poor credit records and those who have had loan applications rejected by more established lenders .
In fact, Provident conceded it was forced to reject around 830,000 applications, although it can still boast 426,000 customers.
Chris Tapp, director of debt charity Credit Action, explained that the figures demonstrate the public's "appetite" for credit.
However, he told the newspaper: "The fear is that while some of these people will hopefully have been put off, many will have to turn to doorstep lenders or pay day loans companies which can charge exceptionally high amounts."
Meanwhile, The Council of Mortgage Lenders recently claimed that the majority of consumers under the age of 30 require financial help from a parent or relative to get on to the housing ladder.
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Borrowers turn to sub-prime credit cards
Mon, 08 Mar 2010
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