Credit card lending criteria 'being tightened'

There has been a slight reduction in the level of unsecured lending to consumers, figures show, as the application criteria for bad credit credit cards and other loans are tightened.

Lenders have seen a decline in the amount of unsecured credit provided to households over the last three months, according to the Bank of England's Credit Conditions Survey.

There are also reports of continued reductions in the availability of unsecured credit lending, which is expected to continue for the next three month.

Consumers are also facing tighter criteria when applying for credit, which could affect the likelihood of those with a bad credit rating from securing finance.

This has been coupled with a fall in demand among households seeking credit in the past three months, which is expected to continue over the next few months.

The Bank of England's chief economist and executive director Spencer Dale recently warned that the economy is just beginning on its road to recovery, despite indications that the country is set to emerge from recession.