Banks and other credit card providers began to review the credit limit of thousands of customers and increase the number of new applications rejected because the impact of the US loan crisis continues. By taking this action, lenders hope that they can reduce the number of Solve the expensive costs of late payment and arrears
Like most UK credit card companies, the major credit card supplier Barclaycard has reduced the credit line of 500,000 customers because it continues to review its customers' consumption patterns and behaviors. Taking such actions, the company hopes to find those who are most likely to be unable to repay their debts, and if the credit crowds even more, in the two-pronged attack on the new credit issue, more than half of the new Bakkera applications will be returned and There are customers who are closely monitoring to ensure that they do not get into trouble.
However, Barclayka insists that this is not a panic measure, but an extension of the policy introduced in 2006. Barclays spokesman said: "Since 2006 Since the beginning of the year, we have been conducting in-depth reviews, thus reducing the number of over 500,000 Cardholder's credit card, we believe that these customers have overextended or exceeded their quotas agreed. "
Although banks believe that their actions are merely good business practices, observers believe it will lead to a drop in profits; the first half of the fiscal year will have dropped by 17%. This is just the beginning of potential problems with Barclays Bank, because it is also Seek to reduce the burden of its consumer loan business, First Plus, to a book value of 4.5 billion pounds in loans because of growing concern about the increase in bad debts. For Christmas, the bad news in the retail industry is that Barclays is not the only one to take this action. Most high-street banks, credit card companies and other lenders are following suit.
From the consumer's point of view, this is a positive change. The era of rich and easily accessible credit card transactions seems to be ending. Compare credit cards, The benefits they provide and the fees they receive before converting or even considering applying for a new card will become more important.Anyone who wants to apply for a new card with an imperfect credit history should carefully consider it because if they are refused to accept any new ones With a credit card, the application will leave a mark on the credit history, which makes it more difficult for them to obtain a letter In the future. [19659006]
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Orignal From: Credit cards crowded on credit cards
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