Credit card providers are fuelling UK's debt addiction
Credit card providers are fuelling UK's debt addiction
Wednesday 18th June 2008
According to price comparison web site uSwitch.com, over the last 12 months 84 per cent of successful credit card applicants were not asked to provide any proof of income to support their application.
Meanwhile, 14 per cent of the sample was not asked about their salary or outgoings.
Simeon Linstead, head of personal finance at uSwitch.com, said: "The fact remains that just because a consumer appears to have a 'suitable' credit score, it doesn't mean they are always honest about their income and actually have the cash available each month to pay the bill.
"The credit squeeze will back some consumers into a corner and, in sheer desperation, people will resort to lying about their salaries as this is such an easy loophole to exploit."
The survey also discovered that 77 per cent of people who were granted credit cards did not get them from their own bank, meaning that the lender would have had scant information regarding the applicant's credit rating.
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