Credit card lending on the rise

Consumers increased card charges in February 2009

By UK CreditCards.com

Credit card lending increased by £0.1bn during February 2009 with £92.2m in purchases made, according to the British Bankers' Association (BBA) monthly lending statistics release.

However, the organisation said that credit card gross lending and repayments were at a "low level" during the month.

"In the wider consumer market, unsecured credit is very subdued and individuals' deposits are also weak, as people respond to the current interest rate climate," commented BBA statistics director David Dooks.

"Within company financing, consumer-facing sectors were the only significant borrowers in February."

According to figures from the Bank of England released earlier in the month, net lending for credit cards increased by £0.3bn in January.

October was also the month that the bank began reducing its base rate from 5%.

The rate is now at a record low of 0.5%.

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Published: 27 March 2009