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The debt consolidation lender has found that clients are seeking alternate lending on the back of new research.
Debt consolidation lender Salt&Lime’s new research has found a lack of understanding from clients on credit scoring and how lending works, which has led to many borrowers missing out on affordable credit.
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The research found that 65 per cent of Australians do not know their credit scores despite 79 per cent holding at least one credit loan product personally or jointly with others.
Speaking to The Adviser, Salt&Lime co-founder Will Kiln said that broker clients are “increasingly looking for alternative loans as banks make it harder and harder to access consumer credit”.
“It’s a great opportunity for the broker to help their customers sort out their finances in a socially responsible way,” Mr Kiln stated.
“Non-prime consumer finance is a tricky area and Salt&Lime gives brokers a socially responsible alternative that will help their clients and ultimately deepen the relationship.”
He added that brokers are on the lookout for more ways to assist clients and providing access to “socially responsible consumer credit is a win for both”.
“Brokers are finding that more clients are looking for financial guidance and education and Salt&Lime provides the financial education and incentivises the client to use it,” Mr Kiln said.
“Salt&Lime customers are given access to financial education modules that improve their understanding of lending and the knowledge of how to pay off their loans sooner. These customers will thank their broker.”
The research found that men were more likely than women to say they know what their credit score is, 40 per cent compared to 31 per cent. Male respondents also said they check their credit score at least quarterly (23 per cent compared to 15 per cent).
Two in three, or 64 per cent of respondents, indicated that they were not aware of at least one factor that can negatively impact their credit score, while 3 per cent could correctly identify all factors.
A further 65 per cent were unaware that shopping around for a credit product creates a negative impact on their credit score, while 47 per cent of those were unaware that missing buy now, pay later (BNPL) payments negatively impacts their score.
Additionally, 26 per cent of respondents said they were knocked back by a bank when applying for a loan.
[RELATED: Salt&Lime joins Purple Circle lending panel]
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