Credit card companies are becoming increasingly selective with which applicants they accept, new figures have suggested.
Between 2004 and 2005, two out of three applications for cards were granted, but statistics show that one in every two is currently being rejected.
It is thought that the development will affect borrowers who habitually switch their
credit card in order to take advantage of low interest periods.
Accountancy group PricewaterhouseCoopers said there has been a substantial drop in the number of deals, with the difficulty of securing credit surprising many consumers.
Sandra Quinn of the UK Cards Association, which represents card issuers and the payments industry, said, “Lenders are being more choosy and looking more carefully at all aspects of an applicant's credit history. We are a long way from the time when credit was shoved at you from all directions.”
According to the figures, the number of cards in circulation dropped by around ten per cent last year as interest rates steadily increased.
The average APR on the top 25 cards was found to be 16 per cent in 2008, but has now increased to more than 17 per cent.
