Credit limits 'upped unsolicited'
Updated on 21 November 2007
More than seven out of 10 credit card customers have had their credit limit increased without asking for it, a survey has shown.
Around 71% of people said their card provider had increased their credit limit unsolicited, while 62% of people said they had been sent credit card cheques, which have handling fees and incur higher interest rates than normal purchases, according to consumer magazine Which? Money.
The group also found that consumers were failing to be discriminating when they selected a credit card, as the most common reason people gave for having a particular credit card was that they already had a product with that provider, with 28% of people saying this was why they had opted for a particular card.
At the same time 21% of those questioned said they had taken out a particular card because of the reward scheme it offered.
Which? also found that consumers were most satisfied with credit cards offered by high street retailers, rather than ones offered by traditional providers.
The John Lewis/Waitrose credit card had the highest customer satisfaction rating, with 84% of consumers saying they were very satisfied with the service they received.
The group was also rated highly for the clarity and accuracy of its statements, and it was the provider that was most likely to be recommended to a friend.
Other retailers with credit cards that were highly rated included Marks & Spencer, Tesco and Sainsbury's.
But traditional providers fared less well, with just 38% of Lloyds TSB customers and 42% of people with an American Express card saying they were very satisfied.
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. If you hold a card simply because you have another product with that provider or for reward scheme points then watch out - you're unlikely to be getting the best deal."
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