Loans -
Credit Action: Lenders are tightening the reins - 27/12/2007
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Lenders are tightening the conditions under which they are willing to allow customers to borrow from them, Credit Action has said.
According to the money education charity, the changing priorities of lenders are attributable to the credit crunch - which has led to turmoil on the global financial markets for much of the second half of 2007.
The credit crunch stems from banks being unwilling to lend money to each other - and Credit Action says that this is now being felt at high street level.
Director Chris Tapp commented: "Lenders have tightened up on their lending criteria…not because it's Christmas, but because of the credit crunch and people being far more risk averse when it comes to their lending.
"About half of people now applying for personal loans are being turned down - more people are also being refused for credit cards."
Recent research from insurers Cornhill Direct shows that around one third of Britons goes into debt by spending on credit as part of festive spending.
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