Most financial analysts seem to have a grim outlook for all of us credit consumers in 2008, that’s because it is expected to become harder for all of us to get credit or even to pay off those loans that we already have.
The so called credit-crunch has created a lot of insecurity amongst borrowers, not that any of it is the UK consumer’s fault; the whole mess stems from risky US sub-prime mortgages. Never the less, UK banks invested there and have taken a big hit, and as they always do, they plan to pass that loss onto the consumer!
Credit reference agency Experian has already said it’s reviewing the methods it uses to evaluate a consumer’s credit rating, in other words, they’re tightening up. This means most people who recently had a mild credit rating will now have to resort to credit cards for people with bad credit when in need of a new credit card; this will cost more in terms of interest paid.
What’s even worse is that some borrowers are not even looking at just new applicants; some credit card providers have changed the terms for their existing customers.
In my opinion, it is severely unfair and should be illegal to impose these unfair terms on your customer, they never reduce charges when they make profits, why increase them when you make a loss?
