Daily Mail, 22nd July 2013 | A Growth in Consumer Confidence
Interviewing Nicola Georgiou of comparison website Freedom Finance, The Daily Mail found that this online broker believes that this increase in consumer confidence comes from the improved lending options offered by the creditors. Freedom, who brokered over £10.7million worth of loans in June, said that the interest rate cuts imposed by lenders have led to more consumers considering taking out credit.
However, Freedom revealed that most loans (52.6%) were taken for consolidation purposes rather than for new spending and that ‘sub prime’ loans are offered to those who cannot obtain credit at the bank.
Freedom users benefit from their unique ‘soft search’ tool found on the website. It allows potential borrowers to check their eligibility for a loan before making the formal application. This ‘soft’ footprint method means that a mark is only left on your credit file should the loan is formally applied for. The aim of this is to reduce the amount of unknown loan rejections offered by the bank’s computerised assessments, thus protecting consumer credit scores and allowing growth in consumer confidence.
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