Foreign Perspectives

Although they can be annoying, it does seem to be a good sign that the people trying to sell you credit cards are back in the shopping centres again and those annoying teatime calls trying to do the same have restarted too.

I imagine that there are all kinds of grand things that the economists are saying these days about when we should be starting to get out of this recession but I think the banks trying to push more credit onto us must be amongst the clearest and most easily understood sign of them all. Not only does that show that the banks have money to lend once more but it also shows that they’re at least prepared to consider lending it too. You might think I said the same thing twice in the last sentence but I didn’t. They always did have money to lend, what they wouldn’t do was actually lend it.

Moreover, this isn’t like them lending via mortgages (which also seems to have restarted, going by the number of “sold” signs going up lately). With a mortgage they have some security (ie they can take the house off you). With a credit card, they are taking a real risk that they could lose the money so overall it’s more encouraging to see people trying to sell you credit cards than it is to see more mortgages being approved.

Now, I’ll grant you that they are probably going to offer you a lower limit than you might have expected in the past, if they offer you a card at all that is. However, that they are trying to actively sell credit cards now seems a very clear sign that an upturn is on the way.