Beware of shopping around for loans
Our research reveals that 88% of Brits are unaware that applying for secured or unsecured loans online can damage their credit rating if they do it too many times. The research reveals a lack of awareness among consumers, which could result in them unwittingly degrading their own credit profile and therefore damaging their overall chances of getting a loan.
We surveyed 1000 British consumers – and just 12% of them were aware that using traditional loan comparison sites to compare typical rates and then applying with multiple lenders to get accurate quotes can damage a borrower’s credit score. Whilst comparison sites have revolutionised the way we search for financial products, some of the most popular sites are simply diverting consumers to complete multiple loan applications until they are accepted. This is compounded by the problem that very few consumers are being offered the ‘typical’ rate advertised.
In contrast, you can use TheLendingWizard.com to see the actual interest rates you will be paying before you apply, ensuring that you are not making multiple loan applications. This approach preserves your credit score, helps you to borrow wisely and ensures you get the loan best suited to your needs.
