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Credit Card Companies ‘Encouraging’ Bad DebtIt looks like the banks and building society’s that were more than willing to give credit cards, to everybody and anybody as if the were going out of fashion, are starting too change they’re ways, as the amount of bad debtors that cannot pay their bills is on a steady upward spiral, that could see the level of already record bankruptcies, being broken time and time again.And whose fault is that if I may add? Well they’re own basically, as they fought tooth and nail with each other, too get as many customers on board as possible and when you think about the amount of times you have been badgered with mail and shopping centre agents and reading advertisements with the promise if great and 0% interest deals, in our national newspapers, all this without counting the many leaflets that fall out of the newspaper when you open it. You can then see why many people who could maybe not afford credit cards and any form of debt, have maybe felt the pressure to applying for a credit card and were easily accepted, thus falling into debt because once people receive credit cards, many think that is free money and spend to the limit, without really understanding how they work. But now many lenders are being more selective in they’re choices of customer for credit cards, with Barclaycard now refusing 50% of all applications, that’s up 10% from the previous 40%. However, is not just them, Lloyds TSB are also reporting that they are rejecting half of all applications for they’re credit cards and with Abbey, Halifax and HSBC going along the same road. This will reduce the chances of getting your hands on a credit card seem to be getting slimmer, especially if your credit score is not favourable. This is good thinking from all of these credit card issuers, but for me it would have been a more noble move if it was being done for the good of the customer, from where I’m sitting, it’s being done because the amount of bad debtors is rising and is eating into the massive profits that they were more than willing to rake in from people who could not afford to run a credit card and it has come back to haunt them. But the move at this present time will only help those thinking of applying for a credit card, is it’s come to late for those who are already staring at a lifetime of debt or the indignity of bankruptcy
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