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The Brexit bounce? Credit card spending hits a high and what it means for you

The Brexit bounce? Credit card spending hits a high and what it means for you

It’s been a historic summer following the UK’s momentous decision in June to leave the EU and the political turmoil which has followed. However, new figures from the British Bankers’ Association (BBA) suggest that the headlines don’t seem to have had much of an impact on our spending.

Apparently we made 168 million purchases on credit cards in July — the first month after Brexit. This is more than in June and above the average of the last six months.

Rebecca Harding, chief economist at the BBA said, “We are clearly still a nation of shoppers and the Brexit vote has done nothing to change the fact that we use credit cards for short-term purchases. Strong retail sales figures appear closely associated with strong consumer credit growth.”

The truth is, while the vote may have been dramatic, most of the effects, good or bad, will be revealed slowly as the government negotiates the UK’s exit from the EU over the next few years. This may mean that the spending slow-down that many economists predicted, including the Bank of England, is still to come. We just don’t know yet.

The data shows that despite the uncertainty, life goes on for us all. We still need to buy things, enjoy our summer and use our credit cards. If you are using your credit card responsibly, there is no extra risk because of the vote. Its best to carry on using your credit card in a way you can manage, building up your borrowing history and your credit score.

A great way to keep tabs on both your credit score and your use of credit during this period of uncertainty is the ClearScore Timeline tool. It’s a handy feature we built which shows you your score, your short term debt (like credit cards) and your long term debt (like a mortgage) so you have a birds-eye view of your finances and can keep everything under control.

 

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