Some borrowers now have a better chance of being accepted for a credit card or personal loan than at the start of the year, according to a study.
Credit audit company Experiential said more than six in 10 customers (61%) using their “marketplace” – a car insurance and money comparison service – had a credit card offer they had been pre-approved for in August, compared to 47% in January.
And 44% of clients had a loan offer they had been pre-approved for, compared to 33%.
As lenders continue to bring competitive products to market, consumers have a better chance of being pre-approved for a product that meets their needs.
Sebastian Worbs, Experian
Consumer eligibility ratings appear next to each result when they compare credit products.
“Soft” credit searches are performed when people compare products with Experian.
Indirect searches allow businesses to take a first look at information on a person’s credit report without impacting their credit rating or future inquiries. They indicate whether someone is likely to be successful if they apply for a particular loan.
Even customers whose credit scores were classified by Experian as bad or very bad were more likely to see credit card and loan offers that they had been pre-approved for in August than in January.
Sebastian Worbs of Experian Consumer Services said, “Eligibility scores give people an indication of their chances of being approved for a specific credit agreement. As lenders continue to bring competitive products to market, consumers have a better chance of being pre-approved for a product that meets their needs.