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Thomas Charles: Credit criteria are tightening

Credit card customers seen as 'high risk' are being more closely monitored than before by providers, consultants Thomas Charles has said.

In the wake of the credit crunch, many lenders are looking to tighten their criteria - turning some customers down who previously would have been able to secure a card.

Many borrowers, therefore, have turned to other forms of credit - such as adverse loans, bad credit loans or other types of personal loans.

Credit card provider Egg recently cancelled the accounts of 161,000 people - seven per cent of its customers - following a risk review.

Research from Moneyfacts.co.uk has also revealed that 69 UK card providers have increased their fees for cash withdrawals - a sign of general rate increases.

James Falla, managing director of Thomas Charles, said: "There are changes in the credit card and store card business – of that there's no doubt.

"I think that card providers are looking at their business quite carefully - the evidence of that is Egg."

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