Are providers lending blindly?
18 June 2008
In the past year, 84 per cent of successful credit card applicants were not asked to provide any proof of their income to support figures they gave in their application form.
Such is the assertion of uSwitch.com, which suggests that 14 per cent of people given a credit card during this period claim they were not asked any questions regarding their outgoings or wage during the application process.
In news that may be of interest to those looking to compare popular credit cards, it was also noted that only eight per cent of respondents were asked for proof of their financial status.
Simeon Linstead, head of personal finance at the organisation, states that the credit crunch could force some people to be untruthful on their credit applications.
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"We cannot ignore the fact that consumers have a responsibility to borrow sensibly, but lenders need to help the process and tighten their credit checking procedures," he concludes.
Meanwhile, financial services provider Experian recently advised consumers to keep a close eye on their credit reports as lenders use them as tools to help them make decisions regarding loan applications.
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