Credit Card Firms Getting Tighter

Credit card companies are becoming increasingly reluctant to hand over interest free loans with the lending market starting to bite.

That is the view of industry expert Andrew Hagger, who is the head of news and press at Moneyfacts, the independent personal finance information site.

Mr Hagger says that banks are becoming increasingly stringent with their lending provision, meaning debtors will come under increasing pressure as credit scoring and the rules surrounding loans are tightened.

"The banks are looking to make sure the people they lend to will be able to repay what they owe," he explained.

While noting that "in the past credit scoring has possibly been on the lax side", Mr Haggers says this is all set to change.

The comments come as several of the high street's biggest lenders announce the impact of bad debt.

Lloyd's TSB today revealed that the firm's retail banking arm has suffered a seven per cent profit slide, with non-performing loans rising by a third.