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"Expensive" credit cards could see more turn to secured loans

Recent instability in the financial sector that has led to what many people have called the credit crunch is limiting consumers borrowing options, one expert has noted.

According to a spokesman for Credit Action, many people in the UK are struggling to obtain credit cards without being charged high interest rates and this is due to recent developments in the lending sector.

Chris Tapp, director of Credit Action, said: "Credit cards have become less widely available and a more expensive option for borrowing than they were in the recent past."

He added that regular high street financial products in general had become less widely available - which may see more consumers opting for and adverse credit loan.

For those who wish to obtain a bad credit loan for reasons such as debt consolidation or home improvements, secured loans are often an option as they do not carry the kind of high rate of interest associated with some credit cards.


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