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Greater transparency needed in consumer credit market
British consumers need to be aware that shopping around for a better value loan can hurt their credit record, a financial provider has claimed.
According to Nationwide Building Society, it is not possible for a consumer to know what rate a loan will charge without asking for a quote.
However doing so can "tarnish" a credit rating and mean it is more difficult and costly to receive a loan in the future, the lender explained.
In a statement, the building society said: "For customers unsure about the rate they would be charged for a personal loan, Nationwide offers its customers a 'soft quote' facility that provides a realistic idea of the actual rate they would pay, without leaving a mark on their credit history.
"Some banks and building societies have the capability to offer their customers this service, but many choose not to offer it. At Nationwide, we have made this service available to all our customers."
The Treasury Committee met earlier in the week to discuss the impact of multiple credit searches on a person's rating.
According to Nationwide Building Society, it is not possible for a consumer to know what rate a loan will charge without asking for a quote.
However doing so can "tarnish" a credit rating and mean it is more difficult and costly to receive a loan in the future, the lender explained.
In a statement, the building society said: "For customers unsure about the rate they would be charged for a personal loan, Nationwide offers its customers a 'soft quote' facility that provides a realistic idea of the actual rate they would pay, without leaving a mark on their credit history.
"Some banks and building societies have the capability to offer their customers this service, but many choose not to offer it. At Nationwide, we have made this service available to all our customers."
The Treasury Committee met earlier in the week to discuss the impact of multiple credit searches on a person's rating.
Published: 02/11/2009
The information in this article was correct at the time of publication and contains time sensitive data and links, it may not be accurate at the time of reading.