Expected increase in credit card applications

Over the months of January there is set to be an increase in the number of credit card applications going through, as an increasing number of people try and reduce the interest that they are paying on the balance that they accrued over the Christmas period. Credit card firms are likely to find themselves swamped by applications for credit cards over the next couple of weeks, according to industry officials.

Following the busy and expensive Christmas period there is frequently a rush on when it comes to credit card applications, as people are keen to try and reduce the amount of interest that they have to pay by switching to a low rate or interest free credit card and transferring their balance. Whilst spending was down this year application levels are still set to be high, particularly in the current financial climate.

One industry official stated: ‘Many people will look for a new start in the New Year and getting finances in order will be top of the list. If you feel your borrowing is out of control or you are concerned about servicing debts or slipping in to arrears, seek advice.’

Another said that those looking to switch to another credit card needed to act fast before things became even more difficult in terms of getting a credit card. He said: ‘The market will contract further. This will be bad news for borrowers who have got used to regularly moving their card debt around. The best advice is to act quickly.’