Users getting smarter with their loan applications
It would seem that UK consumers are getting smarter when it comes to applying for personal finance products like personal loans and credit cards. The price comparison site Moneysupermarket.com revealed today that last month nearly fours times as many people searched through its ‘smart search’ tool for a loan than they did in previous months.
According to their stats 371,000 loan and credit card searches were completed through the Moneysupermarket ‘smart search’ tool compared to only 103,000 searches in December 2006 - Although December 2006 was last month, so perhaps they meant November 2006!?? Whatever the month in question this means UK consumers are starting to realise the need to apply realistically for a product that is suited to their credit rating. Speaking of credit ratings, every time you have an application declined its marked on your credit rating with is damaging when applying for credit in the future, or the lender will simply increase the interest rate because you will be seen as a higher risk.
The Moneysupermarket ‘smart search’ tool matches people with the best product according to their credit rating which can only be a good thing for consumers and lenders.