Credit card providers are increasing the credit limit of their customers' cards without any form of consultation, a new survey has shown.

According to the consumer magazine Which? Money, seven out of ten people highlighted that their limit was upped without being asked.

Consumers wishing to keep track of their borrowing might be better served by a secured loan, with the debt unlikely to grow without the borrower realising.

It was also revealed that 62 per cent of respondents had received credit card cheques without asking - these have handling fees and often have higher interest rates than normal products.

With credit companies increasing spending limits it is a lot easier for consumers to get in trouble with debt and a debt consolidation loan may be useful for those over-spending.

The study also revealed that consumers were choosing credit cards on the basis that they already had a product with the same provider.

Martyn Hocking, editor of Which? Money, said: "You should choose a credit card according to your spending habits and how much you repay each month.

He warned customers that by holding a card simply because they have another product with the provider, they were unlikely to get the best deal.
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