Credit cards 'feeling the crunch'

People considering taking out a credit card may run into difficulties in the current economic climate, it has been warned.

Some lenders are beginning to tighten their criteria, which may mean that the amount of credit available is limited, for example, according to James Falla, managing director of Thomas Charles.

This is a result of credit card providers looking at their "business quite carefully" and may be targeting people who do not spend on their credit cards, instead of people who could potentially get into debt, Mr Falla said.

Mr Falla went on to say: "There are changes in the credit card and store card business - of that there's no doubt.

"Some providers are looking more closely at what you might call high-risk clients and turning perhaps more applications down."

Moneyfacts.co.uk claimed recently that in September and October last year, 125 individual credit card fees and rates increased as a result of the credit crunch.

People who are struggling to control their debt or are in need of a boost to their finances may consider taking out a personal loan, which may ease the strain by consolidating debts into a manageable monthly outgoing.