Financial comparison website warning

According to the report from MoneyExpert, itself a financial comparison website, consumers could be damaging their credit rating by applying for loans they will not be approved for.

“Currently they [financial comparison websites] are overly focused on price which means they can provide banks and building societies with poor quality business as there is no attempt to detail the wider attributes of the product or understand the credit position of the consumer before making a recommendation,” warned report author Professor Merlin Stone.

Around 20 per cent of the population have applied for credit cards or loans through comparison websites, according to MoneyExpert figures.

While praising the choice this gave consumers, Professor Stone warned that not all websites offered the same quality of service and information.

With a lack of information about services or the credit on offer, the professor warned that people will damage their rating applying for unsuitable credit and called for “significant changes” in how such websites operate.