Credit card companies only have “so much” to lend

Posted 2008-05-5

A personal finance expert has claimed that banks want to issue credit cards but only have so much money to lend.

In response to recent figures, which showed up to 18,000 people a day are refused credit cards, David Kuo, head of personal finance at Fool.co.uk, says that banks are increasingly wary about unsecured lending.

He said that lenders have to weigh up who the most suitable candidates to lend to are.

"I think the problem that we have at the moment is that credit card companies do want to issue credit cards but they only have so much money to lend. What they have to do is compare different people: Will I give it to you or will I give it to him over there?." Mr Kuo said.

MoneyExpert.com reported that seven per cent of the population had been refused a credit card in the last six months, which is a total of 3.24 million applications.

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