Brits ‘thinking twice’ about credit cards

Posted 2008-01-17

A growing number of Brits are exercising caution when applying for new credit cards, new research has suggested.

Price comparison website MoneySupermarket.com found that the number of people using its Smart Search tool when looking for a credit product has increased dramatically in the last 12 months.

In December 2007, the site received some 371,000 loan and credit card applications via the utility - more than trebling the previous years figure of 103,000 enquiries.

Tim Moss, head of loans and debt at MoneySupermarket.com, explained that consumers are coming to terms with the tightening of the credit market and are devoting more time to finding the right product for them.

He added: “Each time you have an application rejected, it has a negative effect on your credit rating and reduces your chances of being approved for the next product you apply for, or being offered a higher rate.”

According to Credit Action, total UK plastic debt reached £54.8 billion in November 2007 and there are now more credit cards than people in the country.

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