Credit card and personal loan applications 'down across country'

A decrease in credit card and personal loan applications has occurred between January to March 2010, one report has said.

There has been a two per cent drop in the number of combined credit card and personal loan applications this year, according to one survey.

A study by Veda Advantage reported a decrease between the period between January and March, compared with the same quarter in 2009.

However, despite personal Aussie credit applications dropping it was the lowest decline in two years, which the report suggested could mean there is an improvement on the horizon.

Chris Gration, head of external relations at the company, said it is apparent that Australians are continuing the good savings habits they picked up during the global financial crisis.

He added: "Consumer mortgage applications have fallen substantially in this quarter, possibly influenced by rising property prices and a withdrawal of government assistance for first-home buyers."

Figures released by the Reserve Bank of Australia indicated that there had been a rise in outstanding balances on charge and credit cards in February compared to January, the Australian Associated Press reported.

By Joe Letts