According to recent research, consumers are carrying some 38 million unused credit cards in their wallets. Over 16 million consumers have two credit cards they didn’t use, with 8% claiming they had four spare credit cards, and 7% claiming they have between five and six unused credit cards. These cards have a value of £200 billion.
Most credit cards are not used because consumers are trying to avoid debt, whilst others have had balances switching away to better deals. Many consumers are thought to be reluctant to shut down unused lines of credit, due to rising job losses and stricter lending criteria.
USwitch expert Louise Bond reportedly commented: "Keeping these accounts open may seem like the most sensible thing to do in the current climate as it provides a credit line that can be tapped into at any time. However, this practice could have negative consequences, particularly on credit score as providers also examine the amount of credit available to any applicant, alongside their ability to repay this debt on time."
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38 million unused credit cards
Thu, 23 Jul 2009
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