More people are seeking alternative credit
The number of people seeking affordable credit has more than doubled over the last 12 months during the Covid crisis.
Subscription loan provider Creditspring, which offers fixed cost and low-risk credit solutions, saw its customer base grow by almost 430 per cent from 19,000 to 100,000 customers over a 12-month period.
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The company cited research from Citizens Advice last month which found that one in 10 families, or 3.2 million households, are facing a financial crisis this winter because of soaring bills. Creditspring said affordable credit options are set to be a crucial for the UK’s 12 to 15 million ‘near-prime’ borrowers.
Its own recent research revealed that 18 per cent of people, or more than 12 million adults in the UK, could not financially withstand another lockdown.
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“Reaching 100,000 members is another major milestone as we continue to pursue our goal to help over one million people to improve their financial health in the next five years,” said Neil Kadagathur, co-founder and chief executive of Creditspring.
“With household finances being forced to stretch further this year due to the continued impact of the pandemic and the spike in inflation and living costs, we’ve broken the 100,000 barrier sooner than expected.
“As the costly Christmas period fast approaches, and many fearful another lockdown may be on the horizon, the need for affordable credit options is only going to increase over the next few months.
“We’re firm believers that lenders have a responsibility to offer transparent, affordable options for those who’d otherwise struggle to access mainstream loans. With our credit builder product – Step – we hope to help people to improve their credit score and restore their financial health.”