Reports highlight tight card markets

By UK CreditCards.com

Britain could face a contraction in credit provision due to financial losses at banks caused by rising customer defaults on credit cards and loans.

The International Monetary Fund (IMF) suggested that financial firms around the world were facing balance sheet difficulties which would translate into tougher criteria for corporate and consumer borrowers. In all, demand for credit in the UK was expected to outpace supply at a rate equivalent to 15% of GDP next year.

This is a far higher ratio than those forecast for other major nations. Elsewhere in the report, the IMF said that Britons "traditionally rely more heavily on credit cards for borrowing" and that the UK "appears most susceptible to credit constraints."

It added: "In Europe, with credit card delinquencies rising -- especially in the UK, Ireland and Greece -- consumer credit markets have come under pressure."

The Bank of England also released figures today which highlighted the continuing tightness in credit criteria. According to a survey of lenders conducted by the institution, the availability of unsecured credit to households has diminished over the last three months and is likely to fall further over the next three.

Meanwhile, 11% more lenders reported a fall, rather than a rise, in credit card demand from applicants over July to September 2009.

Charity credit cards can make a difference

By UK CreditCards.com

Use of charity credit cards helps customers "maximise donations" as the recession leads to tough times at not-for-profit organisations, new analysis indicates.

Many charities are facing a financial squeeze in the downturn as consumers are less willing to make donations than before, the Independent on Sunday reported.

Recent figures from the Charities Aid Foundation (CAF) show that the average amount donated by members of the public has fallen by 11% over the past year.

The industry body also suggests that the charities are facing a financial "pincer", with the credit crunch leading to demand for services increasing even as donations drop.

Speaking to the newspaper, CAF spokesman James Ketchall explained: "Those charities involved at the sharp end of the recession -- employment, mental health and debt advice -- are the most hard pressed at this time."

However, the report added that "a few simple steps" by UK consumers could "spell the difference between life and death for some charities".

One of the examples given was the use of charity credit cards, which donate to a chosen causes via customer purchases. For example, MBNA's WWF Credit Card makes a pre-set donation to an environmental charity whenever it is used.

Cards linked to the NSPCC and Cancer research are also available on the UK high street.