For Your Protection and Peace of Mind
All our loans & procedures are approved and qualified by our fully experienced compliance team to ensure they meet our high standards and comply with all current regulatory requirements
 News |
|
Search Categories |
| Archive News |
Credit card providers 'tightening lending criteria' during crunch
There is "no doubt" that some credit card providers are tightening their lending criteria due to the credit crunch but in the main, it is only "high risk" cases that face being refused credit, a debt advice service has said.
James Falla of financial information company Thomas Charles said credit card firms were "looking at their business quite carefully" in the wake of recent stock market turbulence and worries about an global economic slowdown.
However, he added that many companies are tightening their lending limits rather than refusing credit altogether. Some, however, are turning down applications from those considered "high risk".
Financial advice site moneyfacts.co.uk said more than 125 credit card fees and rates had increased following the credit crunch. Over half of these were increases in charges for cash withdrawals, with some providers charging three per cent of the amount taken out.
Another 25 credit cards had increased their interest rates on cash withdrawals.
"My belief is [that] some providers are tightening their credit criteria, so whereas they previous might have given a limit of £10,000, maybe now they're only giving a limit of £5,000," he said.
Thomas Charles provides a free confidential debt counselling service.