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Personal loan lending slowed significantly during the COVID-19 pandemic, but has since picked up momentum, according to a JD Power report.
According to JD Power’s 2022 U.S. Consumer Lending Satisfaction Survey, competitive interest rates, easy access, and a wide range of options are driving demand for personal loans, especially among the economically vulnerable.
“Personal loans are increasingly filling the void left by the end of pandemic-era relief efforts, with banks, credit card companies and fintechs at the heart of this market,” said Craig Martin, managing director of JD Power. It brings important new dynamics to Global Head of Wealth and Lending Intelligence said: “Customers are generally satisfied with these products and the market continues to grow, but we need to make sure the experience our lenders offer is consistent with our promise to help improve financial health. is important.”
If you are considering taking out a personal loan, comparing options can help you get the best interest rate possible depending on your financial situation. Visit Credible to see personalized interest rates without affecting your credit score.
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Financially Vulnerable Consumers Combat Debt with Personal Loans
In its report, JD Power classified about 38% of personal loan borrowers as financially vulnerable. These consumers are using personal loans to pay off their debt or for debt consolidation, lower interest rates on their current debt, and lower monthly debt payments.
Some lenders are catering to particularly high-risk borrowers, doubling the average number of economically vulnerable consumers, the report said.
“As the personal loan market continues to grow rapidly, it’s important to note that there is no one-size-fits-all option that can reach every consumer,” he said. While there is a clear phenomenon of having only one point of view on average, the experiences of specific customer groups at the brand level can vary greatly.
“The most successful companies have a clear understanding of the different needs and expectations of their target customers and optimally invest resources to meet or exceed the expectations of those different groups. ,” Lawler said.
When comparing consumer satisfaction among personal loan lenders, Goldman Sachs Marcus has the highest score (776 out of 1,000), followed by US Bank (757) and American Express (754).
If you are interested in taking out a personal loan, you can compare different interest rates and lenders to find the best option for you. Visit Credible to compare multiple lenders at once Get prequalified in minutes.
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Personal loans open doors to other financial products
According to JD Power, customer loyalty after taking out a personal loan will reach an all-time high in 2022. Overall customer loyalty increased to his 61% of loan customers. This means they are more likely to use the lender again.
This gives lenders who previously offered only personal loans the opportunity to expand with new financial products such as checks, savings, credit cards and investment options. This also introduces consumers to new financial options, potentially improving their financial situation.
If you’re considering a personal loan, a financial marketplace like Credible lets you compare multiple options at once. You can also contact Credible to speak with a personal loan expert Have all the questions answered.
Have a financial question and don’t know who to ask? Email a Credible Money Expert moneyexpert@credible.com Your question may be answered by Credible in the Money Experts column.
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