Are Banks Targeting Good Payers In Credit Squeeze And Is It Starting To Affect Online Shopping?

Are Banks Targeting Good Payers In Credit Squeeze?

In my experience the answer is yes, well they certainly are not bothering with those that can’t pay or won’t pay, no point really it would just be a waste of effort.

I have a credit card that I have always used for my affiliate marketing activity, ppc being the biggest expense, in November they increased my credit limit by £900 and I thought thats cool if I decide to run any vigorous campaigns over the festive period the credit is there, as it turned out I never used this extra credit as I had made a conscious decision to reduce ppc activity so when they reduced me back to the previous limit in January I thought nothing of it.

However every month since my limit has been reduced on this card by a few hundred pounds, I’ve never had any defaults on it and quite often paid off a couple of grand a month, now because of this constant chipping away of my credit limit I am reluctant to over pay in case it drops by more, consequently there is very little spending power on that card now, luckily my seo activity far exceeds my ppc at the moment, if it had happened twelve months ago it would have been a disaster.

I’m sure that many other card users with a good payment record are also being squeezed.

And Is It Starting To Affect Online Shopping?

Hopefully not, April was a pretty good month for me ppc was at an all time low and money earned was pretty reasonable, other affiliates have reported similar results, however if the banks continue to squeeze, disposable funds are going to be reduced making it harder for consumers to make online purchases.

Have any merchants been affected by the credit squeeze?

Has anyone else seen their credit card limit systematically reduced month on month?

Any affiliates noticed a marked downturn in sales?

Anyone got anything else to say about this situation?

Just comment in the box below.