Banks and other credit card providers began to review the number of new credit applications and the number of new applications rejected by the customers 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 the customer's consumption patterns and behaviors. In this kind of operation, the company hopes to find those who are most likely to fail to repay the debt, and if the credit crowds even more, in the two-pronged attack on the new credit issue, more than half of the new Baccarat applications will be returned and Clients are closely monitored 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 we have been conducting in-depth reviews, we have reduced the number of cards over 500,000. Credit card, we believe that these customers have overextended or that they have 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 be down 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 increasing concern about 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 clear 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 Credit cards, 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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