Credit conditions also tighter for the wealthy

Recent research has shown that even the wealthy have been hard hit by the effects of the global credit crunch, which have resulted in far tighter credit conditions and more stringent eligibility criteria from lenders in all areas of the financial industry.

Whilst those on low incomes and with damaged credit have often struggled to get finance or to get their credit limits increased, this is now a problem that is hitting the wealthy as well.

This was highlighted when a director of insurance firm esure, who was on £100,000 a year, failed to get a few thousand pounds credit increase on his card.

He stated: ‘I’ve an impeccable credit score, no county court judgments and no outstanding card balances. We pay off card bills each month and I have a six-figure salary.’

He did appeal against the decision, and added: ‘They said there was a blanket ban on any new credit cards getting a higher limit. I felt this was an over-reaction. The banks have been lending all over the place and then, when they were caught with their pants down and bad debts they start to treat everyone like an idiot.’