Credit card companies want to lend money to people but only have so much to go around, one expert claims.
David Kuo, head of personal finance at Fool.co.uk explained that because of this credit card companies are trying to make sure that they are lending to the right kind of people.
He said: "What they have to do is compare different people: 'Will I give it to you or will I give it to him over there?'"
Mr Kuo added that banks are currently much more cautious than credit card firms when it comes to lending money .
This might mean that people find it more difficult to obtain a personal loan, he concluded.
Mr Kuo's comments come after research by MoneyExpert.com found that 1.8 million people in the UK have had their credit card limit reduced in the last six months.
News Side
Credit card companies still want to lend
Tue, 06 May 2008
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