Credit applications slump in April, says Veda Advantage

Consumer credit applications in April, including credit cards, personal loans and hire purchases, fell sharply on the same month last year, says credit data company Veda Advantage.

There was a 32 per cent fall in hire purchase applications, continuing the downward trend from the previous month - a fall of 12 per cent on March 2009.

Personal loan applications in April also dropped - down 19 per cent on April 2008, and 18 per cent from the preceding month of March.

Credit card applications fell 13 per cent, after falling 17 per cent the month before.

Veda Advantage New Zealand Managing Director John Roberts said the figures pointed to a "continued lack of confidence among consumers, and little appetite for borrowing that may expose households to unnecessary risk. Clearly, most New Zealanders believe the recession has yet to bottom out."