Borrowers experience ‘card limit cuts’
Banks are starting to cut the spending limits of credit card customers, according to the findings of a new survey.
Since the start of the credit crunch lenders have adopted more cautious approaches, making it tougher to obtain an adverse credit loan or poor credit mortgage.
Research conducted by personal finance website Fool.co.uk suggests it is also becoming more difficult to borrow money via a credit card.
It found one per cent of cardholders have had their cards cancelled and a further 12 per cent have had their credit limits slashed.
Reduced limits were particularly prevalent among borrowers aged 42 or over and the website's David Kuo said that could be a sign that lenders are trying to cut back on the amount of unsecured lending they do.
"It seems that by reducing available unsecured credit for older customers, banks are leading these customers towards secured loans," Mr Kuo explained.
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