Credit card market ‘tightening up’

Posted 2008-03-17

British consumers are finding it increasingly difficult to secure credit cards with low interest rates because of the credit crunch, it has been claimed. UK debt charity Credit Action said that many people are struggling to have any kind of credit card application approved as a direct consequence of the ingoing turmoil in global financial markets. "When people can get credit it is often more expensive," Mr Tapp noted, "So credit cards have become less widely available and a more expensive option for borrowing than they were in the recent past." He went on to say that in spite of the unfavourable market, credit cards are likely to remain a popular option given that they have become so engrained in British society. "Credit cards are not about to go away," Mr Tapp insisted. "They are now a normalised part of the way that people manage their money and manage their borrowing." Recent research found that Brits are the most plastic obsessed consumers in Europe, with the average consumer carrying three times as many debit or credit cards as his French counterpart.

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