Credit crunch makes it ‘harder’ for UK consumers to get cards at low-rates

UK consumers are “finding it harder” to get credit cards with low rates of interest due to the credit crunch, one financial expert has claimed.

Credit Action said that credit is not as widely available as it was 12 months ago and in those places where credit can be found, it is often more expensive.

Chris Tapp, director of Credit Action, said: “So credit cards and all kinds of credit have become a less widely available and a more expensive option for borrowing than they were in the recent past.”

However, he added that the popularity of credit cards is still enduring and they are not about to go away as they are now a “very normalised part” of the way that people manage and borrow their money.

Recent research from MoneyExpert.com released at the beginning of the month shows that 3.2 million of us own five or more credit cards and 28 per cent of us applied for more plastic last year.

The news comes despite mounting concern about debt problems as the credit crunch hits home.

Tags: director of Credit Action, crunch, past, Credit score, credit crunch, plastic, normalised part, borrowing

Financial prudence advised over Christmas

Consumers are warned that they must be in control of their finances over Christmas this year.

The Consumer Credit Counselling Service (CSSS) has said that following the global credit crunch, Brits must be more prudent than ever in keeping their under control.

James Ketchell, a spokesperson for the CSSS, explained that Christmas could end up being the “tipping point which pushes people over the edge”.

“People will have to be a lot more careful in their spending than they have been in the past perhaps, and really look at the cost of all the expenses at Christmas…They will have to live within their means,” he continued.

Meanwhile, small loans, which many consumers use to finance the festive season, are set to have increased rates this year, with the average reaching into double figures.

Furthermore, the number of rejections for loan applications has gone up substantially, with moneyexpert.com finding that 1.91 million people had their applications rejected in the six months to the end of September.

Tags: control, Gift, Business Finance, crunch, United States bankruptcy law, Loans

Gay applicants “fairly treated” by life insurers, says ABI

The infamous ‘gay question’ during life insurance applications is no more, the Association of British Insurers (ABI) reassured consumers today.

Whereas previously, applicants had been asked point-blank to specify their sexuality, the ABI has moved to confirm that, under a statement of best practice implemented in 2005, a more non-specific question regarding HIV status is asked.

Claimants are also reassured that any past negative tests they might have taken will have no bearing on their life insurance.

A spokesperson for the association said that “it’s possible that there has been a perception that applications were not treated in the same way in the past, but now no longer do people have to disclose…what their sexuality is.”

“There is government legislation now which means that you don’t have to disclose whether you’re in a civil partnership, so there can be no way that the insurance company knows what your sexuality is.”

Many gay men had felt unfairly treated by the question, which implied that their sexuality posed an inherent insurance risk, providing the impetus for the reform.

Tags: life, question regarding hiv, risk, perception, past, Association of British Insurers, education, question