Credit Crunch impacts online loan and credit card applications
24/07/08
Online applications for credit cards and loans have been impacted by the ongoing effects of the credit crunch. Figures have shown that over the last quarter the market has seen a drop by eight percent in relation to online applications.
Figures from frogybank.co.uk compared the habits of five-hundred thousand consumers between April to June 2008 and the same time last year. The figures were revealed in new data from froggybank.co.uk cashback network and looked at the habits of five-hundred thousand members and compared their buying habits.
Within the same period, it seems as though consumers are changing from one utility provider to another in an attempt to reduce energy bills. These figures rose by thirty-two per-cent.
We’re seeing clear signals that consumers are really feeling the pain in their purses right now”. Quoted froggybank.co.uk’s marketing manager Nadeem Azam. He went onto say that, “They are going out of their way to save every penny they can, which is great news for a cashback network such as froggybank.co.uk.”
According to Nadeem, loan and credit card applications have gone down for a couple of reasons. He said “Some people feel poorer because of the rising cost of living, and are holding off on the big purchases they would normally have made. If you’re not going to replace your car, you don’t need a loan”.
“Others perceive that the credit crunch means getting a loan or credit card is now a lot harder, so they aren’t even bothering.”
