Major UK credit card lenders have indicated that availability was tight in January.
Responding to the Bank of England's lending trends survey, major UK lenders also indicated that demand for credit cards and loans was expected to be subdued in the first month of the year as consumers attempted to address their poor credit scores.
Despite these estimates, the total flow of net consumer credit edged higher in January and the decline in the stock of lending eased.
Credit card lending increased by 0.2 percentage points in January compared to the previous month, sustaining a four-month long trend.
Lending through unsecured loans also increased by 0.3 percentage points.
Credit card borrowing was still below the level in January 2009, when lending grew by 0.3 percentage points compared to the previous month.
Unsecured credit card lending flows have been increasing consistently since December 2008, suggesting that the recession has not had a significant impact on borrowing habits.
Posted by Tom Burroughs
