Minimum income increases for credit applicants

19/11/2008

The number of lenders insisting that consumers earn above a certain salary before being eligible for a credit card has soared significantly over the past six months, new figures show.

Coming as banks and building societies look to insulate themselves from further economic turbulence, a study carried out by MoneyExpert has revealed that 47 per cent of lenders now require credit card applicants to earn at least £18,000 a year before they can be considered for one of their products.

At the same time, 75 per cent of personal loans on the market now come with such a minimum salary requirement, in comparison to 68 per cent just six month ago, highlighting the extent to which many Brits are now struggling to obtain credit.

"Lenders are putting more and more barriers in the way of borrowers as they attempt to keep bad debts under control," the website's director Sean Gardner explained.

"Providers of loans and credit cards now not only require good credit histories but increasingly are looking for evidence of a steady income stream and borrowers need to prove they are in work."

This comes soon after CPP reported that as many as one million British children could be placing their parents' credit ratings in jeopardy by using their cards to make online purchases.

Tags; Debt Management and Banking,

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