Three things that will change the credit market in 2016

One: Increased used of free credit report services

Noddle and ClearScore are offering a great free consumer proposition. Why would a customer pay for their credit report when they can get it for free? In 2016, we expect more people to subscribe to a free credit report service to better understand their credit rating.

Two: Pre-approved quotation search results

Quotation searches have been around for a while, with some issuers already providing them at point of application and the FCA now recommending them in their guidelines. In 2016, we expect further development in this area with pre-approved quotation search results. A small handful of lenders are currently doing this, but more will follow as they try to maintain share in aggregator tables and provide a better experience for their customers.

Three: Churn

In 2016, we expect increased competition in the credit market. There are more lenders in both the personal loans market and credit card market. Traditional table toppers like Barclaycard are going to have to find a way to respond to Virgin, Halifax and MBNA who are matching or even beating Barclaycard’s market-leading offers. Issuers are going to have to work harder to acquire new customers and retain existing ones in 2016.

An exciting year ahead

At TotallyMoney.com, we work across all these areas. As long-time adopters of eligibility screening, we’re excited about lenders offering pre-approved messaging as this will give much better results to consumers. Factor in our savings calculators, new product offers and savvier consumers, and we’re looking forward to helping more people in 2016 compare credit and find the right offer for them, be it on TotallyMoney.com or with our white label partners such as Noddle and ClearScore.

   

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