Quotation searches should be used by all lenders in order to increase transparency and ease consumer concerns about shopping around for deals, it has been suggested.
TheMotleyFool.co.uk’s director David Kuo said that he thinks the process, which is used by Barclaycard and Nationwide, should be rolled out across the industry, calling pre-screening “the way forward”.
“It is only right that people have a good idea as to whether not they will be accepted for a loan before they actually proceed with the application,” he remarked.
Mr Kuo added that people should be free to shop around without having to worry that judgements will be made about them by those looking at their information, indicating that in some instances opinions can be formed that misrepresent the individuals involved.
His comments were made following last month’s Treasury Committee meeting, which examined the effect that multiple credit searches can have on a person’s credit rating.
By Chris Trimble