UK Consumer Credit Slowed in December

While the holiday season was in full effect during the month of December, the UK showed a very sharp decrease in the amount of consumer credit. This slowing down of credit activity actually marked the first time in five months that the pace eased up. Of course experts were quick to offer a number of possible reasons for the drop, which ended up being the most significant slowdown the country has seen since December 2013.

Could Brexit be the Reason?

The first question that popped to mind was if this slowdown could be attributed to Brexit. Experts believe that consumers may be feeling a bit wary about spending as part of "Brexit shock".

The BOE is assuring people that it will continue to make credit available to all businesses and households that need/want it; it seems there are still feelings of doubt and insecurity. This is why the BOE cut its interest rate, marking a new low. The idea was to provide a stimulus program to consumers, which is meant to make Brexit a little smoother on their wallets.

Even with that said and done, it seems as though some are still feeling unsure when it comes to spending and are choosing to pull in the reigns.

Foreign Investors Wary?

Data has also been released by the BOE that is showing foreign investors may also be feeling a bit wary and unsure. There was a marked decrease in this category as well, which again can be attributed to a number of factors. Foreign investors could even be looking at the drop in consumer credit and that may have caused some concern.

Looking Ahead in 2017

So what are the experts predicting for 2017? It seems much of the same will continue through most of the year. Rising inflation due to the Brexit vote is expected to impact the growth of consumer credit throughout the entire year. The value of the pound has decreased, which is, of course, affecting overall spending power.

Staying on Top of Your Credit

In times such as these it’s not unusual to find consumers who have bad credit searching for ways to get loans or access to money. Perhaps you're in this boat, and you're wondering if you can even qualify for credit. By using one of the best credit report services you can quickly find your credit score, which will help you determine if you're eligible for a credit card or loan.

When trying to obtain your credit score, it’s important to use a service that is reliable and reputable so you know your information is safe and secure. Many of these services offer more than just a score, they also provide reports so you can get a detailed look at your score. It's amazing how many mistakes can actually pop up on your record, which you can then clear up to better your score.

Some people even choose to track their credit score on a regular basis. This can prove to be useful if you are looking to improve it, or you just want to ensure that it stays accurate. With identify theft and fraud being so rampant nowadays, checking your credit record and score is a great way to ensure your ID is secure.

The Good News

While it's easy to focus on the bad news, the fact that the monthly growth rate slowed, it's important to point out the positive. Even though there was a slowdown, there is still growth happening. It's also important not to look at one month's figures as the new normal or a trend. The next couple of months will be very telling and help to predict where overall growth is heading.