More people than ever before are having their credit card applications rejected, it has been claimed.
Apacs, the UK payments association, has said that many lenders are taking a more stringent approach to who they will give money to.
The comments came yesterday as Barclays bank revealed that their annual profits are forecast to top £7 billion.
However Barclays also said that bad debts will cost it around £2.2 billion, up 37 per cent from last yearís £1.57 billion.
An Apacs spokesman commented: “We know that on average, at industry level, there are more applications for credit cards being rejected now than there were previously”.
In related news, the British Bankers’ Association today announced that credit card borrowing fell by £496 million in January compared to the previous month.
The news prompted the BBA director of statistics to comment: “We can see that the January sales did not encourage borrowing on credit cards”.
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