Credit card offers based on credit rating

Having a poor credit rating can mean that consumers are only offered unattractive credit card deals -- or none at all, according to Defaqto.

David Black, principal consultant of banking at the financial information group, explained that the credit crunch has also hit people's chances of getting a credit card, as banks become wary of lending. "Many providers concentrate the majority of their lending on existing customers and a 'cautious approach to lending' is becoming an increasingly commonly heard phrase," he said.

"Existing customers are not immune from this process as lenders will also monitor their creditworthiness." However, consumers who do pass lenders' criteria are likely to be offered a good deal, Mr Black claimed.

In most cases, around two-thirds of suitable candidates will be able to sign up to the advertised loan rate, while the rest will be offered a higher rate, in order to cover the lender's perceived risk, he said.