Prime loan applicants also suffer
A large proportion of UK loan lenders are moving towards reducing their applicants average credit thresholds, in an attempt to curb bad debt.
According to a recent report by a leading financial broadsheet, thousands of borrowers will be forced to reduce their rate of credit acquisition, due to a national reduction in loan and credit card acceptances.
It is suggested that many loan and credit card providers are introducing stricter borrowing guidelines to new customers, and reducing the availability of credit to existing customers, as a means to curtail the affects of the so-called credit crunch.
A spokesperson for one of the UK’s largest credit reference agencies commented that more and more lenders are becoming extra selective with regards to who they except and who the don’t. There are a large percentage of prime applicants, who are having their borrowing thresholds reduced and are being refused credit, whereas ordinarily they would almost certainly have been accepted.
Some analysts believe that bad debt is reaching uncontrollable levels, and it would appear that a high proportion of the countries lending industry are starting to adopt the same belief.
