Banks limiting credit cards

Two of Britain's biggest banks are looking to limit new credit cards to existing customers only.

This will potentially further limit available credit since the economic downturn with mortgages and secured/unsecured loans already impacted.

Both RBS and HSBC have credit cards which are only available to current customers. The fear is that banks are effectively holding onto cash and further restricting the economic recovery even though the Bank of England has pumped in more than £175 billion into the banking system.

The RBS group, which is majority owned by the taxpayer, has been imposing strict controls and high profit margins to rebuild it's balance sheet. People are being refused credit if they do not have an absolutely blemish free credit score.

Only time will tell, but this is a worrying trend for the consumers who are also part owners as tax payers in some of these institutions. Will the likes of Barclays, Santander, Halifax, Lloyds, Nationwide, and so on, follow this trend? Should the government intervene as ultimately, this will only impact the fragile economy and potentially any imminent election.