Deliver Your News to the World reveals that credit cards firms target the unemployed has revealed the results of a new study which shows credit card providers are reducing their application criteria while hiking up charges.

WEBWIRE is warning consumers of the dangers of debt as a study by the leading price comparison website shows a credit card may be more attainable for many people than last year, especially those that are unemployed or on lower incomes. However, average fees and charges have risen making borrowing more expensive.

The study, which compared the whole of the UK credit card market in July 2011 with July 2012, shows there are currently 23 credit cards that would potentially accept someone that was unemployed compared to 17 last year.

The latest employment figures from the Office for National Statistics show the number of unemployed people was 2.56 million in the three months to June 2012, up 51,000 from a year earlier. Meanwhile, the number of people unemployed for over one year was 882,000, up 1,000 from the previous quarter, with the study suggesting credit card providers could be aiming to meet increased demand from those out of work.

Many credit card providers have also reduced the amount someone would need to earn before successfully applying for a credit card. The annual income required for a successful application has decreased year-on-year from an average of £9,718 last year to £9,035 in 2012.

Should the trend continue for another year, or at least stay the same, this would take it below the amount people need to earn before paying income tax, which the government announced will rise to £9,205 in April 2013. Currently people can earn up to £8,105 per year before paying the basic rate of tax.

Credit card providers are also letting more people in on their top cards - the minimum income required for a platinum credit card has decreased by 36% from an average of £18,425 in 2011 to just £11,838 this year.

Meanwhile, the number of credit cards available and aimed at people with substandard credit scores or limited credit histories have increased by more than half from five last year to 11 in 2012.

However, despite credit cards potentially becoming more attainable over the past year, the study shows average interest charges and fees have risen, making borrowing more expensive.

The average balance transfer fee has increased from 2.27% in 2011 to 2.81% this year. A person transferring a balance of £2,137, which is the average balance moved onto new cards, would have previously paid £48.51 on average. With the increase, they will now pay an average fee of £60.05.

Looking at the whole of the UK market, interest rates have increased since last year - representative APR has gone up from an average of 18.5% in 2011 to 20.5% today. started to compare credit cards in 2008 and customers can compare credit cards from across the whole of the UK market.

Nerys Lewis, head of credit cards at, said: "As credit card providers make more cards available to more people, we are warning consumers of the dangers of debt as it appears to be increasingly easy to obtain yet more expensive to get rid of.

“However, credit cards can offer consumers a number of benefits, such as earning rewards on their spending, offering purchase protection, and improving their credit scores, so we’re simply urging people to use them in a responsible manner, as well as shop around to get the best deals.”

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About is one of the UK’s biggest and most popular price comparison services. Launched in 2002, it generates over one million quotes per month. It has expanded its range of comparison products over the last couple of years to include more specialised insurances such as multi car insurance, contents insurance and critical illness insurance.

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