Studies reveal differences in consumer experience with consumer credit. In July 2016, Good Finance Customer Surveillance Office conducted a survey with us on people’s attitudes towards unsecured consumer loans and their providers. The consumer credit banks mentioned in the study were Good Finance and Bank.
Reliability and service distinguish your bank from online consumer credit companies
Reliability was considered to be the biggest difference between own bank and consumer credit providers, and the second biggest difference was personal service from your own bank. Respondents would borrow primarily for renovation and decoration, and the second most popular item would be to buy a car.
The importance of cost increases with age
A large proportion of respondents would be prepared to borrow from outside their own bank if the required consumer credit is available elsewhere at a lower cost. About 65% of respondents aged 40-50 would be willing to borrow from a bank other than their own if a competing company offered a cheaper loan.
Up to 70% of those over 50 agree.
Consumer credit preferring men – women more cautious
More than a third of female respondents could not imagine taking consumer credit for any purpose, only a fifth of men. Men’s more favorable attitude towards consumer credit is particularly evident in car purchases – almost half of men could use consumer credit to purchase a car, but less than 30% of women.
Although women are, on average, more skeptical about consumer credit, they are more positive about taking on consumer credit for other major purchases.
Women are more committed to their own banks and men are more positive towards offshore banks
More than 60% of men and 47% of women would be prepared to take out consumer credit from other financial institutions than from their own bank if they had a cheaper loan elsewhere.
However, traditional banks are attractive, as 25% of women and 16% of men would not take consumer credit from private financial institutions other than their own bank, even though they do not completely reject consumer credit.
Men are also more open-minded towards women without banks. Over 60% of men would be ready to switch to a bank without a branch, but less than half of women.
Indeed, women appear to be, on average, more loyal to their own bank than men.
Surveys show that men are bolder in financing larger purchases through online consumer credit than women.
However, men are more clearly limited in what they want to use consumer credit for, and women are more open about what the consumer credit will finance.
Consolidation of loans with consumer credit is skeptical, though when used properly, can be a good way to get rid of debt.
If you have been considering consumer credit for financing a car, renovation or vacation, for example, be sure to first compare the prices of loans offered by different finance companies and banks.