Too many credit cards could lead to confusion and credit problems
According to a recent report having too many credit cards on the go could result in confusion for some credit card customers, and this could leas to oversights such as missed and late repayment, which, of course, result in hefty fines and fees being charged to the customer’s account, as well as black marks going on the credit file.
The warning comes from the Consumer Credit Counselling Services, and follows a recent report that shows Brits have the highest number of plastic cards in their wallets reflecting just how reliant the nation has become on credit cards.
Credit cards have always been popular in Britain, and according to the report the past soft credit conditions have made it easier for Brits to get their hands on multiple credit cards.
This has added to the personal debt mountain that is causing so much concern in Britain, and has resulted in an increasing number of Brits holding several credit cards.
However, with credit conditions now becoming tighter due to the credit crunch Brits will not find it so easy to get another card, and in fact some cardholders – namely around 161,000 Egg credit card customers – have even had their credit cards withdrawn.
An official from the Consumer Credit Counselling Service stated: “In the UK we have a far more liberal approach to credit in many other European countries - the market has been liberalised since the early 1990s and really the credit card companies have been doing a lot of work, we’ve got a very competitive credit card market.”
He added: “There are plenty of reasons why people may have numerous cards - people might have one for work, for example, or you could have one which has got a transfer balance on it with a low interest rate, and then another one for purchases and that kind of thing…it can become confusing.”
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