(PRWEB) June 29, 2006
Credit card borrowers with flawless borrowing histories are increasingly likely to be turned down when applying for new plastic, reports Moneynet.
Mounting evidence from users of the online data analyst points to card companies giving preference to more profitable applicants who are less likely to clear their monthly balances.
Analysis of the credit card approval process reveals a pattern of approvals for those borrowers whose previous histories showed they were ‘soft’ targets for card companies – while those who paid off their balances were more likely to be refused.
“A common scenario is for card providers to decline applicants who already have a substantial line of credit available on other cards, but who want to take advantage of longer interest-free periods from newly available plastic,” said Moneynet.co.uk chief executive Richard Brown.
“Our users tell us they are baffled by the rejection as they have perfect credit histories – and only find out the real reason when they apply to credit reference agencies such as Experian or Equifax,” added Brown.
“Credit card companies tell us they are acting responsibly by turning down borrowers who already have existing, generous lines of credit.
“But the more cynical view – and one that is backed up by Moneynet users – is that they prefer to issue cards to applicants who they know will ultimately be more profitable.”
Moneynet’s Most Desirable High Street Credit Card Deals June 2006
Provider Card Std APR Introductory Terms
Barclaycard Platinum 17.90% 0% on balance transfers for 12 months and on purchases for 3 months
Capital One Platinum 15.90% 0% on balance transfers until 01/09/2007 and on purchases for 3 months
Tesco Bonus Card 12.90% 0% on balance transfers and purchases until 01/03/2007
Standard Rate Cards
Provider Card Std APR
Barclaycard Simplicity 6.80%
Halifax Flat Rate 5.90%
American Exp Amex Blue 6.90%
Moneynet is the UK’s longest established online personal finance research and data analysts. The company offers consumers a choice of thousands of low cost financial services products. From mortgages, personal loans to motor, home and medical insurance, credit cards, savings accounts and best buy fixed rate products, Moneynet is one of the most comprehensive online services of its kind in the UK. Founded by chief executive Richard Brown, the Moneynet brand is destined to become one of the UK's major players in consumer finance products.
For further information:
Consumer enquiries: 0208 460 2833/ Moneynet
Richard Brown, Chief Executive, Moneynet 020 8313 9030
David Andrews Media Ltd:
Cathy Tully, Account Manager 01273 774109
David Andrews, Director 01273 774109
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