Credit Card News

Over the last week, a number of Barclaycard customers have reported receiving unexpected letters stating that their credit limit would be cut, sometimes by thousands of pounds. Although the planned credit limit cut by Barclaycard has taken many of its customers by surprise, all credit card lenders have the ability to cut customers’ limits at any time and this is not the first time a lender has suddenly reduced borrowers’ credit card limits. Despite this, having a credit card limit suddenly cut can cause stress and anxiety for borrowers but, fortunately, there are some steps customers can take if their credit card limit has been reduced unexpectedly.

Credit cards can be a very convenient way to borrow money and, if used carefully, can be a good personal finance tool for consumers. But, just as with any type of credit, applying for a credit card does not mean that the lender will approve the application.

In fact, it’s not uncommon for consumers to have credit card applications denied, especially if they are applying for a credit card offering an attractive deal, such as a long interest-free period on 0% purchase or balance credit cards. As well as this, there are many reasons why a credit card application is declined.

For those applying for a credit card, here are some of the reasons why a credit card application can be declined, as well as what to do if the application has not been successful.

Today marks the start of Debt Awareness Week, which coincides with the one year anniversary of the first lockdown in England and Wales, the financial fallout of which has seen many consumers falling into debt.

In fact, StepChange, the debt advice charity behind Debt Awareness Week, has acknowledged the impact the pandemic has had on people’s finances and the fact that many are worried about the debts incurred over the last 12 months by encouraging consumers to use this week to take the first steps towards getting debt help and talking about their financial problems.

“This Debt Awareness Week, we’re focusing on breaking down the stigma that surrounds debt, opening up the conversation and encouraging people to take #TheFirstStep towards resolving their money worries,” explained Richard Lane, director of External Affairs at StepChange.

“With the week also marking a year since lockdown began in England and Wales, and 2.5 million people facing a financial crisis due to the impacts of Coronavirus, it’s more important than ever that households across the country know where to get help. You are not alone.”

Those struggling with debt should consider seeking help and advice from a free debt charity, such as StepChange, or from Citizens Advice.

For those who have incurred extra debts over the last year, but who are able to manage their debts, here we’ve put together some steps consumers can take to reduce and clear their debts.

Interest-free deals on credit cards have improved over the last three months, while personal loan rates remain competitively low, but consumers are urged to act quickly to secure the best deals as experts warn that they could be withdrawn at any moment.

Consumers looking to ease the financial pressure of borrowing money, either through using a 0% purchase credit card or by transferring credit card debt onto a 0% balance credit card, will be pleased to see that the interest-free deals on these cards have improved since December.

Indeed, figures to be published in the Moneyfacts UK Unsecured Lending Trends Treasury Report found that since December, the average number of interest-free days offered on 0% purchase credit cards has increased by six, up from 278 on the 1 December 2020 to 284 on the 1 March 2021. Meanwhile, the average interest-free term on a 0% balance transfer credit card has increased by 10 days, from 520 to 530 during the same period.