Increase in credit cards restricted to existing customers

Analysis by independent financial research company Defaqto has revealed an increasing trend for credit cards to be restricted to existing customers.

There are now 45 credit cards which are restricted to existing customers which represents a 462% increase from the 8 credit cards that were similarly restricted 3 years ago.

Kevin Bray, Insight Analyst for Banking at Defaqto said: "It seems that credit card lenders are increasingly focusing their marketing upon their existing customers. For instance, it is no longer unusual to see credit cards restricted to a provider's current account customers and some of these are differentiated from their generally available cards by offering a preferential deal such as a longer 0% introductory offer."

Mr Bray added: "The most attractive deals are generally the preserve of those with the best credit ratings and as a consumer's credit status deteriorates it is becoming increasingly difficult to get a credit card."