Financial Services > e-banking > Banking news
Bank of England Warns of Restricted Credit Card Availability

Fri, 03 Jul 2009

The Bank of England has warned that credit cards will become harder to obtain with lenders further tightening their lending criteria. The Banks latest Credit Conditions Survey revealed that during the last financial quarter, lenders not only reduced their credit card limits, but also imposed tighter credit scoring criteria. Nearly 31 million Brits have a credit card, according to figures from the UK Payments Association, meaning the latest tightening of the availability of credit could pose financial problems to millions of Brits.

With large numbers of Brits reliant on their credit cards to tie them over to the next payday , and loans only really available to those with good credit records, it is feared that lenders may turn to unregulated credit forms to try to solve their financial problems.

On a more positive note, however, the survey did indicate that lenders had raised the level of secured credit available to homeowners for the first time since the survey was published in the third quarter of 2007. However, experts have cast doubt over these claims, and insist there are few signs of any increased availability of secured credit.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

Save on your mortgage

Save on Your Mortgage

Save money on your mortgage? Fill out our quick mortgage enquiry form.

Health cover, life insurance and PMI

Health Insurance

Find Critical illness, Life and Private Medical Insurance PMI policies.

Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Amex Cash Back
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company