Related Credit Card Article

"Banks to provide detailed data over credit card customers"

By admin | January 23rd, 2009 | Balance Transfers

Many people that are hoping to keep switching credit cards this year in order to try and save money on interest may be in line for bad news, as it is likely that lenders will be increasingly rejecting applications as a result of a new process that has been put in place.

Difficulties could arise as a result of lenders deciding to share more detailed information with one another when it comes to credit card customers, which will give them a better idea of whether to approve an application or reject it.

The more detailed data that banks intend to share with one another with regards to credit card customers could make it far more difficult for consumers to switch.

The increased sharing of data will allow credit card providers to check things such as how much money the borrower pays back each month on any existing credit cards, what their credit limits are, whether there have been any changes to credit limits, whether cash withdrawals are made on the card, and whether only minimum repayments are made on the account.

Rate tarts – those that tend to switch cards on a regular basis to cut back on interest – will find things more and more difficult according to officials, with one expert stating: ‘While the increased levels of data sharing may prevent some cases of customer over-indebtedness, it also gives lenders the ability to pick and choose customers and decline applications from non profitable ‘rate tarts’, who constantly move their borrowing to 0% deals.’

The data that lenders will be able to see will help them to determine what course of action to take with a borrower’s account or credit card applications.

One official stated: ‘Once they see the levels of debt, they could decide to increase your interest rate or reduce your credit limit based on the new information.’

Tags: rate tarts

Related Articles:

• The problems facing credit card rate tarts

  Over the past few years the term rate tart has been banded about a lot, and the wide range of credit cards has come onto the market over recent years has resulted in borrowers being able to save a small fortune on their borrowing. The launch of 0% balance transfer credit cards has played a...

• Credit card rejections result in increase in false information

  Since the global credit crunch made its way to the UK all financial industry sectors have been affected, and all have tightened up their lending criteria as a result of this. Like other types of lenders, many credit card firms are increasingly cautious over handing out credit, particularly to those that could be considered a...

• Credit card companies getting tougher

  Credit card companies across the UK are continuing to get tough in a bid to try and minimise on the risk of increasing bad debt levels. Over the past couple of months a number of credit card providers have increased a range of fees, charges, and rates in order to compensation for lost revenue, bad...

• Facility introduced to help reduce affecting credit score when looking for credit card

  These days many people may be looking to get their hands on a low rate credit card, particularly given the increased reliance of consumers on credit cards in the current financial climate. However, over the past eighteen months lenders have become far more restrictive when it comes to giving out credit cards, and are far...

• Defining Credit Surfing

  Credit surfing is now a very common practice in the United Kingdom, for one reason and one reason only – to save money. Here is some further information on credit surfing. Credit Surfing Defined Credit surfing is simply moving from one low rate deal on a credit card to another as soon as the first runs out....

Other Recent Articles

Use of credit cards declines whilst payday loans increase

It seems that many consumers may have switching from spending on credit card that can sometimes come with high rates...

By Reno | February 10, 2012 | Read More

Useful Tips for Credit Card Holders

Modern technology offers comfort and convenience that is often helpful for people in a fast paced everyday living. With just...

By admin | February 7, 2012 | Read More

Credit card decision by Lloyds could have serious effect on charities

For many years now, a range of leading and well known charities have been able to boost the levels of...

By Reno | January 28, 2012 | Read More

Many have to rely on credit cards to make ends meet

There was a time when people had credit cards to enable them to pay for occasional larger, more expensive items...

By Reno | January 26, 2012 | Read More

Brits increasingly dissatisfied with credit card providers

According to recent reports, Brits are becoming increasingly dissatisfied with their credit card providers, particularly in the case of the...

By Reno | January 20, 2012 | Read More