Retailers worry credit limits will dampen holiday shopping
As the holiday season approaches, some Americans may be concentrating on saving money.
In a recent piece from Reuters, reporter Alexandria Sage noted that many retailers are worried that consumers managing their money will lead to lower holiday sales. Furthermore, retailers are trying to account for greater restraint used by lenders when it comes to credit card debt.
Due to the economic downturn, many card companies are pulling back credit limits or refusing to give people credit cards unless they have a high credit score. Some lenders have even canceled credit card accounts.
“While analysts believe that bad credit card loan defaults have already peaked, the losses have put credit card companies on the defense,” the Reuters report noted.
As a result, retailers are trying to find ways to offer options for consumers when it comes to how they pay for gifts. For example, Sears and K-Mart have upped the presence of their layaway programs on their websites.