Against the backdrop of the Lloyds TSB/HBOS takeover and the Lehman Brothers controversy, it turns out that even customers with exemplary credit histories are having their spending habits reigned in by credit firms as a precautionary measure.

This has prompted angry reactions from customers who have never defaulted and always managed to successfully juggle their finances, and have found their cards to be rejected when attempting to purchase goods in high street chain stores and even when making purchases as small as train tickets.

Customers who have enjoyed four figure spending limits on their cards in the past have seen their limits shrink into the hundreds. A recent post over on This is Money gives the example of a Mr. Jones from Coventry, who had the ceiling limit on his Sainsbury’s credit card scythed down from nearly £5,000 (£4,950) to a mere £700.

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Credit Card firms are busy cutting the rates of their balance transfer fees in order to help new and existing customers manage their finances with greater ease in these uncertain times. Credit companies are always looking out for the next big thing that will get customers to bite; for the last few years for example, we’ve seen the rise and rise of the 0% balance transfer cards.

Of course, the sting in the tail with 0% balance transfer cards has always been the handling fee that you pay for the transfer itself, and it is now this area of credit cards to which lenders are turning their attention.

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Looks like Tesco aren’t the only ones getting in on the home essentials action; rival supermarket chain Sainsbury’s have just announced some credit crunch busting discounts to several of their insurance products.

New customers signing up to Sainsbury’s Home Insurance online before the 8th of October 2008 will be able to qualify for a hefty maximum discount of 25% off of their basic buildings and contents cover premium (not including optional extras such as insurance for garden equipment etc). This is in addition to a £20 Sainsbury’s shopping voucher which can be redeemed against all shopping purchased in any Sainsbury’s outlet, which is, of course, covered by the contents section of the Home Insurance policy…

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Being able to successfully juggle credit cards with high rate of APR is one of the least known but more effective ways of improving your credit rating – so long as you don’t run into trouble with repayments and don’t default, having a card with a super high APR can be advantageous for you when you want to make that big loan or mortgage application in the future, as it demonstrates your ability to handle your finances well.

The Capital One Classic Card is a card primarily used to for high street and online purchases – the rate of 34.9% APR includes balance transfers, not exactly ideal for paying off existing balances. The Capital One Classic Card comes with a ceiling limit of £2,500, and no annual fee and is therefore ideal for students and younger earners aged 18 or above who want to start building a good credit reputation for the future.

Having said that, Capital One’s Classic Card is ideal for anybody who wants to improve or rebuild their credit rating – making small purchases, staying within your credit limit and paying everything back on time using the Classic Card will guarantee marked improvements in your reputation after 6 months.

As well as being able to pay for purchases online, you can also easily manage your finances online by downloading and printing out your own statements, should you wish to not receive statements in the post.