Tight restrictions leave card customers disappointed

20/07/2009

Britain's credit card providers might be tightening criteria for customers - leaving even those who always pay off their balances having applications rejected.

There are concerns that responsible customers are being turned down because they do not make the card provider a profit, the Sunday Times reports.

Credit card firms charge typical annual interest rates of over 16 per cent for money owed by cardholders - making customer debt a key source of revenue.

However, with the onset of the recession and the financial crisis earnings have become squeezed - leaving both "high-risk" and "no-risk" customers more likely to be rejected.

Speaking to the Sunday Times, Ed Mayo at Consumer Focus commented: "Credit card providers seem to have given their game away.

"By refusing credit to consumers with excellent scores, they appear to be measuring something other than risk."

Richard Phillips, 61, also told the newspaper that he recently had an application to a major high street provider declined.

"I have never missed a payment in the past 40 years," he said.

Tags; Debt Management and Banking, Retirement Money Problems, Credit Card Lifestyle, Recent Graduate Debt,

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