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Financial comparison website RateCity, has launched an online personal loan marketplace that aims to help Australians find out their chance of being approved for a personal loan, and the interest rate they are likely to be offered – even before applying for it.
“Until now, the only way of working out whether you’d be approved for a personal loan was by applying to each individual lender,” said RateCity CEO Paul Marshall. “Not only is this time consuming, but every application puts a mark on your credit file.”
According to Marshall, potential borrowers can use a smartphone, tablet, or computer to know “in seconds” where they stand with each lender in the online marketplace, without affecting their credit score.
It took six months for the firm to develop the personal loan marketplace, with the help of Equifax and participating lenders who shared their credit criteria, pricing and approval data.
“The marketplace has been made possible by modern, consumer-focused lenders such as RateSetter, Society One, Now Finance and Harmoney, which see the value in transparency in the personal loan marketplace,” said Marshall. “Without their sign-on, consumers would still be largely in the dark.
Commenting on the launch, RateSetter CEO Daniel Foggo said, “This launch means Australia is catching up with the UK and US markets, where consumers with good credit behaviour can use similar marketplaces to access lower rate personal loans.”
