BANK ACCOUNTS, CREDIT CARDS

Consumer credit lending lower than in 2010

Consumer credit lending decreased by 3% in June 2011 and by 1% in the period April-June 2011, compared with the same periods last year, according to new research.

The latest consumer finance figures published by the Finance & Leasing Association (FLA) revealed that consumer credit lending fell in comparison with last year.

By basing their figures on million pound (£m) units, the study reveals that the percentage of difference between June this year with the same month in 2010 shows -6% (£m) difference in credits cards, -14% (£m) in store instalment credit and a +7% (£m) in second mortgages.

"We are still waiting for significant signs of recovery in the consumer finance markets. During the last twelve months, we have seen some markets performing better than others. In spite of a relatively weak performance in June, car finance volumes have remained stable over the past year. The decline in High Street spending has affected the retail store credit market," said Geraldine Kilkelly, Head of Research and Chief Economist at the Finance & Leasing Association.

Big offers from banks

Despite people is trying to reduce the amount of money they take from the banks, most banking companies are still making a big effort to attract new customers. Numerous offers have been launched recently, especially regarding credit cards.

This week, Halifax bank launched a market leading 22 month 0% offer available on their new credit card customers; it is their longest balance transfer ever. Halifax clients will also be able to choose a 17 month 0% balance transfer card.

From 5th September this year, Santander will launch its new 123 Cashback Credit Card, which will offer customers cash back on their everyday spending. The bank claims that it is the first card of its type to offer these cash back amounts on a monthly basis.

Furthermore, Halifax and CreditExpert from Experian have launched a new partnership designed to increase First Time Buyers’ (FTB) chances of buying a house. Those whose credit score is an obstacle for having a mortgage will be the kind of clients that will benefit from this new service.

Tags: BANK ACCOUNTS, consumer credit lending, CREDIT CARDS