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Credit Card Companies Plan To Cut Back Credit Limits

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Credit card companies plan to cut back credit limits

Banks say they have no plans to lend more to credit card customers and terms are likely to get more onerous, according to the Bank of England.

While cost of finance for lenders is apparently coming down interest rates on credit cards have not followed suit as banks move to shore themselves up against rising consumer credit risk, the Bank said in its Trends in Lending report.

Given the perception of higher risk, lenders expect credit limits to be reduced and credit scoring criteria to be tightened further, the Bank said.

In discussions with the Bank, none of the major UK lenders - Banco Santander, Barclays, HSBC, Lloyds Banking Group, Nationwide and Royal Bank of Scotland - indicated any plans to expand the availability of consumer credit, it added.

The Bank said interest rates on overdrafts and personal loans have fallen in recent months and net consumer credit - excluding credit cards - rose in June for the first time since December 2008 as lenders said there had been a slight increase in net lending via personal loans.

'The tentative recovery might be consistent with the recent pick-up in private car sales, some of which is likely to have been financed by personal loans,' according to the report, although its authors said lenders are seeing few signs of a significant increase in demand for personal loans.

The data also confirmed what lenders said in their monthly update - that mortgage lending rose a little in June.

For the first time since April 2008, total gross mortgage lending by the major UK lenders increased as remortgaging levels also ticked higher, the Bank said.

...

...Remortgaging to pay off plastic, maybe?

Any ways,

Looks like the whole shell game is running out of smoke and mirrors. Banks have little or no ability to re-inflate the credit bubble, and government lies are as thin and transparent as the skin on the back of your granny's hand.

The jig is up.

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The banks need all the pennies they can get apart from mine apparently.

Still sore ?

Or should this reply be on the off-topic forum 'aneros' thread ?

:blink:

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That's weird.

My credit card company just increased my limit (like they are not supposed to anymore without asking) and sent me a credit card cheque with an offer to use it, pay low interest for a few months before it went up mega.

I thought this was outlawed?

It goes to show. You can't believe all you read in the papers. :lol:

Good work Sibs, get yourself down Bluewater asap to spunk it all ;)

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Guest happy?
That's weird.

My credit card company just increased my limit (like they are not supposed to anymore without asking) and sent me a credit card cheque with an offer to use it, pay low interest for a few months before it went up mega.

I thought this was outlawed?

It goes to show. You can't believe all you read in the papers. :lol:

It was me - we're planning to re-possess your house as a means of stopping your asinine postings.

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Guest DissipatedYouthIsValuable
That's weird.

My credit card company just increased my limit (like they are not supposed to anymore without asking) and sent me a credit card cheque with an offer to use it, pay low interest for a few months before it went up mega.

I thought this was outlawed?

It goes to show. You can't believe all you read in the papers. :lol:

I only used to get credit card cheques sent to me when I'd got close to running out of money.

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That's weird.

My credit card company just increased my limit (like they are not supposed to anymore without asking) and sent me a credit card cheque with an offer to use it, pay low interest for a few months before it went up mega.

I thought this was outlawed?

It goes to show. You can't believe all you read in the papers. :lol:

That is because sibley has a very high credit rating. :lol:

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That's weird.

My credit card company just increased my limit (like they are not supposed to anymore without asking) and sent me a credit card cheque with an offer to use it, pay low interest for a few months before it went up mega.

I thought this was outlawed?

It goes to show. You can't believe all you read in the papers. :lol:

You could use it for a deposit on that BTL flat you have always dreamed of.

Better rush, prices are rising again!

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That's weird.

My credit card company just increased my limit (like they are not supposed to anymore without asking) and sent me a credit card cheque with an offer to use it, pay low interest for a few months before it went up mega.

I thought this was outlawed?

It goes to show. You can't believe all you read in the papers. :lol:

Just goes to show that the analysis of spending metrics to then directly target people who're easily suggestable is spot on. ;)

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That's weird.

My credit card company just increased my limit (like they are not supposed to anymore without asking) and sent me a credit card cheque with an offer to use it, pay low interest for a few months before it went up mega.

I thought this was outlawed?

It goes to show. You can't believe all you read in the papers. :lol:

Well obviously it's an omen. You should take the hint and use the money as a deposit on a few more BTL's. You know you can't go wrong with property.

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Overall I think there has been a large increase in disposable income amongst the spending section of the community as their mortgage payments have been slashed. Probably more than compensates for any decline in consumer credit. Poor old savers - they should have spent their dosh.

I thought that only around 50% of mortgage holders had benefited? Would that number really make up the shortfall in the economy?

I think the big driving factor was easy credit which helped drive volumes, cutting mortgages by a couple of hundred a month for a what is a small majority of the population I don't think would make up the loss.

You also then have to factor in the effect this has had on those who used their savings as income, these people now won't be spending.

Overall I feel it won't make up for the loss of credit.

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