Bank of England reports credit card limit increase
According to their latest Credit Conditions Survey, the Bank of England has found that credit card limits had increased at the end of 2011.
The increases occurred at a time when the demand for this type of lending had declined, with other forms of money lending also experiencing a decrease.
Suggested reasons for this change include the current economic crisis. The current situation surrounding the Euro-Zone is thought to have made consumers more cautious about their spending, resulting in a reduced demand for credit cards and other financial loan products.
This decreased demand is expected to continue throughout 2012 as the Euro-Zone crisis continues to remain unresolved.
Alternatives to credit cards
Perhaps one of the other reasons why credit cards were not in such high demand for the last quarter of 2011 is that there are plenty of alternatives available.
Unsecured loans have continued to gain popularity recently whilst other forms of card lending, such as prepaid credit cards, have also experienced some success.
Prepaid credit cards are often seen as a better alternative to standard credit cards due to the reduced risk of debt. The cards have money pre-loaded onto them in order to encourage responsible spending and give individuals the freedom they need with fewer risks.
Orange prepaid credit card
Demonstrating the type of offers which are currently available to borrowers, Orange have launched an exclusive one-month offer on their prepaid credit card.
The Orange Cash Card is being offered free to customers when they load £20 onto it, crediting the £5 which you would normally pay for the application fee onto your Orange Cash account instead.
The card benefits from no monthly fees or transaction costs and also comes with a generous rewards system. This sees one point accrued for every pound that is spent and these points can then be used to add credit to an Orange ‘Pay As You Go’ mobile phone.
The current offer will end on January 31 and, therefore, means consumers only have a limited time to take advantage of this deal.