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Economic slowdown affects all types of credit, says expert
Lenders are tightening up their credit policy across all finance products due to the current economic climate, Equifax has said.
Neil Munroe, the company's external affairs director, commented: "Whether it's mail order or a mobile phone or a mortgage or a credit card or a loan, all lenders are taking action to make sure that bad debt doesn't get worse than it is at the moment."
All types of credit will be affected by the credit crunch in various degrees, he claimed.
But it is mainly people who were previously around borderline as far as credit worthiness is concerned that are perhaps not accepted anymore, added Mr Munroe.
Highly scoring customers will probably not be affected because lenders are generally targeting the "marginal" customers that they may have accepted in the past but may not accept under the current circumstances.
According to Credit Action, consumer credit lending in the UK grew by £2.4 billion in February 2008.