New credit card lending appetite subdued
By UK CreditCards.com
Credit card lending levels could suffer in the UK in the near future as a result of the ongoing economic instability.
Recent research has suggested that the average interest rate charged on a credit card hit 16.25% in December, which was a slight rise from the 15.58% recorded 12 months earlier.
David Black, from financial information firm Defaqto, explained in an interview with the Times that credit card holders should be fully up to date with the terms of their deals in order to avoid unnecessary surprises.
Furthermore, he suggested that consumers who are looking to take out new credit cards in the remainder of the year can expect to have difficulties as lenders tighten their purse strings.
"There is little appetite for more unsecured lending, including credit cards, among providers at the moment," he told the newspaper.
"In the coming months we will see interest rates rise, more cards with annual fees and shorter introductory offers for new customers."
According to the UK Cards Association, 6.4 million Britons saw their credit card interest rates increase between January and October last year.
Published: 17 February 2010
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