Beware headline rates on comparison sites
Nicola Georgiou, managing director at loan comparison site Freedom Finance, said: “Comparison sites are often a first-port-of-call when shopping for financial products such as insurance and loans.
“However there are pitfalls that people should be wary of. In the personal loans space we are used to seeing headline rates being widely advertised but the reality is that these low interest rates are out of reach for most borrowers.
“Unless you have a perfect credit score, applying for a headline rate loan online will probably result in a rejection and can permanently damage your credit score.”
Using comparison sites with soft search technology to apply for a loan will safeguard borrowers’ credit scores by only showing the best possible products for their individual circumstances.
Georgiou added: “Developments in technologies like these show that the industry is moving in a positive direction and tools like soft search are set to become the norm in the near future.”