He Added That While Most Banks Do Want To Issue Credit Cards, There Is A Limited Amount Of Money To Lend

Category: Finance, Credit.

Commenting on recent research suggesting that 18, 000 people are refused credit daily, a spokesperson for financial advice resource Fool has said that there are limits on the amount that banks can loan in a tightened economic environment.

He added that while most banks do want to issue credit cards, there is a limited amount of money to lend. According to David Kuo, head of personal finance at the firm, today s banks are operating in a more cautious economic environment and as a result are more reluctant to lend. unsecured credit was identified as an area of financial backing particularly constricted by the global uncertainty concerning economic stability. His comments came in response to figures published by Moneyexpert recently suggesting that one in fourteen consumers who had applied for credit in the past six months had been refused- a total of 24 million people throughout the UK. That you have previously defaulted on credit card payments and maybe you have defaulted on payments other than your credit card bills, " he explained. Offering advice to those looking to obtain a loan or credit, Mr Kuo commented that it was important to assess objectively whether a loan is likely to be successful, with likely causes of rejection such as poor credit history or high levels of personal debt identified as an important factor to consider when making applications. "Quite often you will know why you ve been turned down for a credit card and the answers are quite straightforward. [It could be] because you have excess amounts of debt compared to your income. He added that it is important to find ways of repaying the debt before making a credit card application, with credit reports noted to be a valuable tool in assessing the health of personal finances and the likelihood of being accepted for a credit card. Advising those looking to make an application, he stated that it is beneficial to think about personal finance from the perspective of the lender, with poor repayment history and large levels of personal debt said to be particular areas of concern for financiers.

For those who are struggling with debt and have a poor credit history, a bad credit loan may be of assistance in helping to take control of personal finances, providing the liquidity to begin making regular payments towards debts and improve credit ratings. If this sort of examination is not made prior to an application, it is more likely that people will receive a refusal and damage their credit rating further. If people are going to be applying for a credit card then they need to make sure that they are almost certainly going to get it before they apply for it. " Elsewhere, it has been revealed recently by financial services firm moneysupermarket that a growing number of Britons are racking up increasing debts in pursuance of lifestyle habits that are difficult to afford. Concluding, Mr Kuo commented: "People need to be very mindful of because every time you are turned down for a credit card application it counts against you on your credit reference. According to the group, more than 7 million people are using personal loans to cover the costs of" keeping up appearances" .

Read more...

Your Statement Can Even State The Time You Made The Purchase - Finance and Credit Articles:

Every year, millions of Americans go on vacation.

Credit Card Companies Are Real Businesses And They Are Here To Make Profits From Us - Finance and Credit Blog:

Credit card companies are real businesses and they are here to make profits from us. Thriving on a persons inability to repay his monthly balances on time, credit card companies fill up their coffers.

Credit Control - Finance and Credit:

From the moment you have your first business idea, through the periods of growth and development, Inksmoor and our Business Partners can provide the debtor and funding solutions to help make that path easier.