With a population of more than 8 million people and an area covering 606 miles, London is a huge city with the largest economy. As one might expect for such a large city consisting of 32 boroughs, the demographics vary wildly and so do the number of credit card applications in different areas.
Here is a breakdown of the different trends in the rate of credit applications:
- East London has the fifth highest number of credit applications in the whole of UK
- West London has the lowest number of credit applications in the whole of UK
- South West London has the third lowest number of credit applications in the UK
- South East London has the worst acceptance rate in London at 41.3% (58.7% of applications rejected)
- West London has the highest acceptance rate in London at 43.9% (56.1% of applications rejected)
For more information about how your area ranks, take a look at the Totally Money Credit Map.
The reasons for these differences
These can vary. South-East London is still not a very affluent area, so one imagines that this is the reason for the high number of rejections. However, West London, where the affluent areas of Chelsea and Mayfair can be found, has the highest rate of acceptance. This suggests that people residing in these areas regularly pay their credit card bills and do so on time, and suggests that they may have lived in the same place for a longer time than those from other regions.
The fact that West London simultaneously has the highest rate of acceptance in London and the lowest number of applications could be due to the lack of need for credit.
East London is very much a mixture in terms of demographics, so the fact that its residents make the fifth largest number of applications for credit cards in the UK could be down to wisdom with regard to the way in which having a credit card can actually boost your credit rating.
What can be done to increase your chances of getting a credit card?
To increase your chances of being accepted for a credit card you should check which cards you are more likely to be accepted for. A ‘soft search’ tools like the one from Totally Money, allows you to check your eligibility for a credit card without have any kind of adverse effect on your credit. Using tools such as this can increase your chances of getting a credit card by 250 per cent.
Make sure that all of your bills for your existing credit cards and loans are paid on time, as failure to do so can diminish your credit score. Don’t keep applying for credit as this can ring alarm bells for cautious lenders that fear you may be applying for credit that is beyond your means. Make sure that you research the terms of a particular credit card before applying as the criteria for acceptance can vary wildly from one lender to another.