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Personal credit

Discussion in 'Money and Personal Finance' started by PD, Nov 9, 2017.

  1. PD

    PD Retired

    Banks and credit card companies increase customer credit limits without asking, should this be stopped to keep people from getting into too much debt?
  2. Jezza

    Jezza Regular Member

    There's a loan firm on TV offering short-term loans at 1,259%
    That can't be right!
    By all means have credit available to those that need it but HMG should curb the usury.
  3. Bromptonaut

    Bromptonaut Rohan Man

    I've been quite glad occasionally when Santander have increased credit limit on my Zero card (fee free for use abroad) as initially it was only £1500 and would have been easy to hit on a longish holiday.

    Not personally too bothered now either as I can pay it off as/when but I agree with Citizens Advice that it's not right if people are constantly maxing it and only paying minimum payment each month.
  4. Welsh dragon

    Welsh dragon Well-Known Member Staff Member

    When i got my first credit card the max spend was £250. Gradually they put it up and up until it reached £10,000. I have never got anywhere near that spending limit. I do think it is too easy to get credit cards with high spending amounts and it appears that few if any checks are done on a persons ability to repay the money should they reach their limit.
  5. Pale Rider

    Pale Rider Active Member Staff Member

    I took out an interest-free period credit card to pay for my last new bike.

    My plan to pay it all off over a few months worked, although my resolve wavered a bit so it took 10 months or so, rather than the four or five I'd aimed for.

    All a bit of a luxury for me, I didn't need a shiny new bike and I could afford to pay a bit of interest.

    Those who can least afford to pay interest and those who may genuinely need to borrow are charged the most.

    Of course we know why, the lenders have the less well-off between a rock and a hard place.

    The lenders need to attract the discretionary borrowers such as me through offers such as zero interest periods.
  6. Highlander

    Highlander Member

    Just to show my age, I remember in Scotland, when I was a child, loan sharks being jailed for charging 70% interest rates. But that's was when, this was a Christian country, usury was illegal. As far as I know, it is still illegal, only bankers dictate to governments, and the police is a profitable business venture.