Shopping Around for Unsecured Credit
The Treasury select committee has recently published a report suggesting that consumers who do their best to shop around for the best deals on unsecured credit are actually at risk of being penalised by lenders. Particularly when searching for unsecured credit like personal loans and credit cards that offer the best rate, lenders are actively trying to discourage consumers from seeking out the best deal on the market. The Office of Fair Trading and Information Commissioner’s Office have been called upon to investigate claims that those people who make numerous applications for credit in search of the most favourable rate are damaging their credit report. So, we find ourselves in a situation where the most prudent borrowers amongst us are being punished for their sensible approach to the market, even if they are perfectly capable for servicing the debt they intend to take on.
Effectively, those prospective borrowers who are looking for the best rate are being rewarded with reduced access to credit or higher rates for borrowing. In spite of the black marks that go on your credit report for making credit applications, there is very little evidence that the data collected from applications is of benefit to the industry in curbing irresponsible lending practices or limiting the risk of fraudulent applications. In fact, the only real evidence available on borrower habits points towards a widely held belief amongst consumers that it is better not to shop around for a good deal because it will damage your credit rating in the long term.
If you are facing the pressure of mounting debt and are shopping around to find the best deal for a consolidation loan or other debt solution, talking to a specialist debt advisor should be your first step. For any concerns surrounding personal finance, debt management and freeing yourself from the burden of bad debt, talk to one of the dedicated team at Debtsolver. They can offer you debt help that can repair your credit rating and provide support to get you out of debt. Shopping around for the best deal on unsecured credit should be encouraged as you consumers must be certain that they can service any debt that they take on. Otherwise, serious debt problems lie ahead. Should you be facing debt problems, talk to an advisor at Debtsolver or simply fill in the Debt Wizard for a fast, free breakdown of the solutions that will best suit your circumstances.
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