Credit card firms assessing business “quite carefully”

Credit card providers are assessing their business with increased diligence, it has been claimed.

James Falla, managing director of Thomas Charles, stated that the actions of online credit card provider egg are evidence of this trend, where rarely used cards were cancelled.

Earlier this month, over 16,000 egg credit card holders were notified that their plastic would be useless in around 30 days.

Mr Falla explained that these customers were actually costing egg money in the long-run.

Although he claimed not to have seen a dramatic upheaval in store card credit and availability, he added that there have been some changes.

Providers who would have previously lent a borrower £10,000 may reduce this to £5,000, he added, as restricted access to credit may impact on available limits.

“I do also believe that some providers are looking more closely at what you might call high-risk clients and turning perhaps more applications down,” Mr Falla said.

© Adfero Ltd

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