New insights from Experian suggest that consumers have a better chance of finding a pre-approved credit card or loan than they did at the start of this year.
Following the lifting of lockdown restrictions in July, lenders have continued to bring new products to market. 61% of customers using Experian’s Marketplace saw a credit card that they were pre-approved for in August 2021, a 30% increase on January’s figures. Further, 44% of customers saw a loan that they were pre-approved for in August 2021, a 33% increase over the same period.
Customers with a poor credit score (561 – 720) were 49% more likely to see a credit card that they were pre-approved for in August 2021, compared to January 20211, and 32% more likely to see a loan that they were pre-approved for. Those with a very poor credit score (0 – 560) were 94% more likely to see a pre-approved credit card offer and 18% more likely to see a pre-approved loan offer over the same period.
Sebastian Worbs, MD Products at Experian Consumer Services said “Eligibility ratings give people an indication of their chances of being approved for a specific credit deal. 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.”
“People looking for credit should regularly check their credit score and use comparison services to shop around until they find the one that’s going to work best for them. This will give them the knowledge to apply with confidence when the moment is right and help protect their credit score.”
Alongside the improvement in credit eligibility, Experian found an 18% increase in the number of people searching for credit in the two weeks following Covid-19 restrictions ending in England.
Worbs continued “With the economy still in uncertain shape it can be reassuring for people to know that there are credit options available to them if they need it. Many brands are improving their offers at the moment, whether that’s a lower APR, or an increase in 0% balance transfers.”