PricewaterhouseCoopers report on consumer credit

Joanne Garcia, head of credit cards at Confused.com, says PWC's Precious Plastic report highlights that credit issuers are now unable to turn to wholesale markets as they were able to in the past.

Allied with increased regulation on capital requirements, lending activity will in future be restricted to those customers on whom certain margins will be made - and as such, any customer who is deemed at risk of "going bad" will be avoided at all costs.

To counter this, it is important that consumers manage their credit files, and reduce the negative impact of failed searches by only applying for cards for which they are likely to be accepted - something which the Confused.com credit profiling tool can help with.

It is not just new customers who should beware though. Proposed government intervention, such as the banning of credit cards cheques and a ban on selling point-of-sale PPI are likely to reduce key revenue streams, Precious Plastic identifies increased rates and/or fixed fees as areas issuers may target to mitigate this lost revenue. Those who have a credit card already may find their issuer raising their rates and, if they do, consumers should use the Confused.com credit profiling tool to check the type of APR their profile entitles them to, select the best value deal, switch, and pocket the difference.