Credit cards harder to obtain

You may have good credit or some credit challenges, but in the past you would of been able to get a credit card albeit a higher interest rate. Now, it may not be as easy because the economy is hurting all the credit card companies.

This in turn has forced them to scale back on the amount of credit available to loan out. They simply have been forced to become more conservative in their lending practices. According to Bloomberg:

Jan. 8 (Bloomberg) -- Consumer credit in the U.S. dropped a record $17.5 billion in November as unemployment close to a 26- year high discouraged borrowing and banks limited access to loans.

The slump in credit to $2.46 trillion was more than anticipated and followed a revised $4.2 billion drop in October, Federal Reserve figures showed today in Washington. The median estimate of economists surveyed by Bloomberg News projected a decrease of $5 billion. The series of 10 straight declines was the longest since record-keeping began in 1943.

A labor market that’s shed 7.2 million jobs since the recession started in December 2007 is restraining consumer spending that accounts for about 70 percent of the economy. Fed policy makers have said tighter bank lending standards and reductions in credit lines are hampering the recovery.

So if you are turned down now for a credit card, don't take it completely personally. The credit card companies are just in their own struggles.