The future of credit cards

uSwitch estimate that 14 million consumers now use credit cards for day to day spending.  That’s a lot of cards and a lot of debt and with most of us used to having access to available credit, are things likely to change in the future?

According to David Black, a Banking Specialist from Defaqto, it would appear so.  Things are getting tougher for providers as they face a number of hits on their credit card income streams including:

  • the introduction of a £12 cap on default charges (e.g. if you go over your limit, make a late payment or your payment bounces)
  • the decreasing numbers of people taking payment protection insurance
  • prevention of fraud and security which is proving expensive

He goes on to predict that introductory 0% interest offers will become shorter and less readily available, reward schemes may be curtailed and annual fees may be introduced so perhaps we have seen the peak of the credit card market?

There will always be a need for credit cards, to pay for an unexpected bill or for another unforeseen circumstance, but it looks as if the credit card market as we know it today may look dramatically different sometime in the future.


Source: and Credit Action – October edition

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