<< Most Recent Articles

Credit card criteria 'tightening this year'

When considering taking out credit, cards may not be the best option this year, it has been claimed.

Due to the ongoing credit crunch, credit card providers may be applying stricter rules to their lending criteria, according to Thomas Charles.

The debt counselling service has stated that lenders are "looking at their business quite carefully" as a result of the economic slowdown, meaning that people who could "potentially get into debt" may be avoided.

James Falla, managing director of Thomas Charles, explained that providers may tighten their criteria, which may result in the amount of credit available becoming limited.

"There are changes in the credit card and store card business - of that there's no doubt," he said.

"Some providers are tightening their credit criteria, so whereas they previously might have given a limit of £10,000, maybe now they're only giving a limit of £5,000."

More applications may also be turned down, Mr Falla added.

According to Moneyfacts.co,uk, in September and October last year, fees and rates were increased on over 125 different cards.

People struggling to control debt may consider consolidating their finances.

See how much you could save with a consolidation loan from Lombard Direct.

© Adfero Ltd

26/02/2008 15:18:06

Most Recent Articles