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2008: 'the year of the secured personal loan'

Next year could be the year for secured personal loans, according to predictions from moneysupermarket.com.

According to the price comparison website, this year's credit crunch means that good value unsecured personal loans will be harder to come by.

Steve Willey, speaking for moneysupermarket.com, said that lenders are beginning to tighten their lending criteria, which could herald a shift in borrowing behaviour.

Customers may also start borrowing lower amounts with credit cards instead of choosing unsecured loans, making it even more important for customers to take care of their credit rating, he added.

"The best new deals are likely to be reserved for those with an angelic credit score, meaning a consumer's best friend next year will be their credit rating. Those with even a slight blemish could see their credit limit reduced without warning as lenders review their existing portfolios and attempt to protect themselves from any potential bad debts," Mr Willey said.

Britain's borrowing is nearing £177 billion this year, with almost one in ten adults having access to over £20,000 worth of credit.

See how much you could borrow with Lombard Direct Loans.
© Adfero Ltd

17/12/2007 12:07:57

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