It is not unreasonable for consumers to assume that they should be able to assess their eligibility for a loan without damaging their future prospects. The majority of lenders perform hard credit checks on customers when applying for a loan, and as a result are hiking the cost of borrowing for the customers they decline. Sarah Jackson, Director at Equiniti Pancredit, highlights the glitch in the system and explores how lenders can use automation to stay on the right side of their customers.
TSB chief executive, Paul Pester, recently highlighted that the cost of a loan is often driven up, not because of a change in the applicant’s financial circumstances, but by the way lenders use credit checks during the application process.
