The UK’s Costly Credit Lesson

Like millions of us, you've probably filled out a credit card application. And when you did, you were probably asked to provide proof of income. Once all the necessary information was in hand, the credit card company probably ran a check to see what shape your credit was in. If everything looked good, you soon received your very own charge card. This is the standard procedure. Right?
Not necessarily. Some shocking statistics from the UK suggest that 82% of all successful credit card applicants in 2007 were never asked to verify the information on their applications. 14% said that they never even answered questions about their income or outgoing bills.
As a result, some applicants overstated their income by as much as 70% in order to qualify for the cards. Many used the cards unwisely, and had to take out additional loans to make their monthly credit card payments. Others simply defaulted; lenders in the UK had to write off £17.3billion of credit card debt last year.
Some responsibility lies with the lenders, of course, but card holders should know their limits and be realistic about their spending habits. Don't let this happen to you!