Future financial difficulties for many credit card customers
As part of a nationwide cull many credit card companies have recently slashed the credit limits on the cards of many customers, reducing the limit to just £100 above the existing balance.
The card issuers did not inform customers of their intention to cut limits, stating that they did not want to give the customers the opportunity to go out and spend on the cards in order to increase their existing balance and therefore their credit limits.
It has now emerged that many of these customers could face future financial difficulties, as the reduction in credit limit could have an adverse effect on the consumer’s credit file.
Lenders look at how close to their credit limit card customers are when deciding whether to offer finance, and the way in which the credit limits have been cut means that affected customers will be extremely close to their credit limit until they repay their balance.
An official from a credit reference agency stated: ‘These changes will show on your credit report and could have implications. Lenders can assess this information any way they wish. If you are only a couple of pounds below your balance that could ring alarm bells.’
Another official said: ‘The credit limit cut does create an interesting conundrum. The credit scoring models don’t take into account limits cut by creditors to minimize their own risks. So a limit cut that leaves the debtor essentially maxed out can only protect the lender and harm the debtor. This seems grossly unfair since the debtor isn’t given ample warning or notice to clear the decks and instead is caught by surprise.’
Comments
36 Responses to “Future financial difficulties for many credit card customers”
Leave a Reply
fbwg0co21gzwcgs4
Hi there, I found your blog via Google while searching for first aid for a heart attack and your post looks very interesting for me.
ohhh nice info
Keep working ,great job!
Hello Guru, what tempt you to post an article. This article was exceedingly fascinating, especially since I was searching for thoughts on this subject last Thursday.
Of course, what a great site and informative posts, I will add backlink - bookmark this site? Regards, Reader.
Very, very cool site site! I am loving it!! Will come back again - taking you feeds also, Thanks.
VRy interesting to read it
Hello Guru, what tempt you to post an article. This article was exceedingly fascinating, especially since I was searching for thoughts on this subject last Thursday.
That
Hi there, I found your blog via Google while searching for first aid for a heart attack and your post looks very interesting for me.
I keep listening to the news speak about getting free online grant applications so I have been looking around for the best site to get one.
Good post but not cool enough to rule. I usually never comment on posts, and yet I can’t help leaving a comment: people never learn, they will always spam you! Amazing work.. beautiful
Nice post! GA is also my biggest earning. However, it
I wish getting over a broken heart can be so easy as following a few steps.. but its not
Wow! Thank you! I always wanted to write in my site something like that. Can I take part of your post to my blog?
Want to have stable and high income, but cannot imagine where to invest your funds? We already have an answer to this question - MMCIS is the most profitable decision! Your money will be invested into innovative projects worldwide and you will receive income by times exceeding bank interest rate! We diversify our assets greatly, which allows us to minimize risks. We will make our Fund your reliable partner for years. Make a deposit now and appreciate all benefits of working with our Fund!
Greetings all…
So after nearly 5 years of focusing on the finance sector and really enjoying every minute of it…the time has come to expand my horizons and take the next step in delivering great products for Microsoft. So as of very soon (date TBD) I will be moving to a Program Management role in a new product being developed in the Office division.
This brings back to mind something funny that my mother pretty much always said…
Of course it is definitely not appropriate right this moment…
my God, i thought you were going to chip in with some decisive insght at the end there, not leave it with
Easy Online Payday Loan is the leading provider of faxless payday loans. Solve your money worries and apply for a faxless payday loan today!
you should get a better control of English grammar
Hey quite wonderful webpage!! Man .. Lovely .. Awesome .. I am going to bookmark your web site and consider the feeds also…
Salut ! Vive renault et les voiture Francaises ! C’est la crise, achetez francais…;-)
Coucou ! Vive renault et les voiture Francaises ! C’est la crise, achetez francais…;-)
I’m looking saucy of your forwards posts and i want whatever spirit on account of my project.My best regards
It is really great article .
I like your points of view. Thanks for sharing.
Coucou ! Vive renault et les voiture Frenchy ! C’est la crise, achetez francais…;-)
Coucou ! Vive renault et les voiture Francaises ! C’est la crise, achetez frenchy…;-)
Always looking for something new to own. Looks like this might be it.
Man ist unschuldig, bis seine Schuld bewiesen ist.
You will find spam reviews in your blog. Aside from that, your website is always appearing errors on my Opera web browser.
United we stand, divided we fall,
Prosperity is just around the corner. (Better times are coming soon).
Hi. I’m fascinated in putting affiliate ad on this situation web site. I cannot find the get in touch with page so here I am.
The last straw will break the camel’s back.