More and more
credit cards are being restricted to existing customers only, recent research has revealed, which could lead people to contact
bad credit credit card companies instead.
A study conducted by independent financial research company Defaqto found that there are now 45 credit cards in the UK which are restricted to existing customers.
This represents a 462 per cent increase from the eight credit cards that were restricted in this way three years ago.
In September 2008, the number of credit cards only available to existing customers stood at nine, increasing to 22 in 2009 and more than doubling again over the last year.
Kevin Bray, insight analyst for banking at Defaqto, said that credit card lenders seem to be increasingly focusing their marketing on their existing customers.
"It is no longer unusual to see credit cards restricted to a provider's current account customers and some of these are differentiated from their generally available cards by offering a preferential deal such as a longer zero per cent introductory offer," he said.
Mr Bray hinted at the importance of improving a bad
credit rating, stating that, as a consumer's credit status deteriorates, it is becoming increasingly difficult to get a credit card.
Last week, an article published by the Which? website claimed that
poor credit credit cards should be considered by those hoping to improve their existing credit scores.
It explained that these are a good option for those who have a bad rating due to not having borrowed money in the past.
Posted by Gemma Walker
