You are here: Home - Credit Cards & Loans - News -

Consumers may find it more difficult to get credit in Q2

Written by: Paloma Kubiak
A survey of banks and building societies has revealed they expect credit card lending to tighten “significantly” in the second quarter of 2017.

According to the Bank of England’s latest Credit Conditions Survey, a quarterly survey of bank and building society lending, lenders said the availability of unsecured credit to households decreased slightly in Q1 and was expected to decrease further in the second quarter.

They cited a tightening of credit scoring criteria for granting credit card and other unsecured loans, adding that they expect credit scoring criteria on credit card lending to “tighten significantly” in Q2.

While demand for credit card lending was unchanged in Q1 from the previous three months, they said they expect it to increase slightly in the next quarter. Demand for other unsecured lending products increased slightly in Q1 but they expect a slight decrease in the next three months.

On interest-free periods for both balance transfer offers and purchases on credit cards, the lenders reported an increase in Q1 and they expect further increases in Q2.

Default rates on credit card lending to households is reported to have fallen as were losses given default. The latter was expected to fall again in Q2 while default rates on other unsecured lending was unchanged in Q1, though they expect it to rise in Q2.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Eight ways to save on holiday costs

If you’re using the long Easter weekend to research your summer getaway, here are eight top tips to save on...