Subscription loan provider, Creditspring, announces that it has surpassed 100,000 members earlier than expected as households remain in need of support during the Covid-19 pandemic. The company reveals that its customer base has grown by almost 430% from 19,000 to 100,000 customers over a 12-month period.
Creditspring’s fixed cost and low-risk credit solution offers customers access to two advances per year, with clear repayments, capped costs, and no hidden charges or confusing APRs. The number of members has doubled since July this year as inflation continues to soar – rising faster than at any point in almost a decade – and increased household costs continue to put a strain on people’s finances. Currently, one in ten families – or 3.2m households – are facing a financial crisis this winter due to soaring bills, affordable credit options are set to be a crucial lifeline for the UK’s 12-15 million ‘near-prime’ borrowers.
As many of these borrowers have limited access to mainstream lending products, due to credit files that are thin or in need of repair, they are more susceptible to unscrupulous, unregulated lenders – and are at risk of becoming trapped in a cycle of debt.
Creditspring’s recent research reveals that 18% of people – more than 12 million adults in the UK – could not financially withstand another lockdown. Today’s milestone marks an important step in its journey to improve the financial health of over two million people by the end of 2025 and to put over £230 million per year back into the pockets of its members.
Since its launch in 2016, Creditspring has lent a total of £30 million, with half of this lent over the last six months.
Neil Kadagathur, Co-Founder and CEO of Creditspring, comments: “Reaching 100,000 members is another major milestone as we continue to pursue our goal to help over one million people to improve their financial health in the next five years. With household finances being forced to stretch further this year due to the continued impact of the pandemic and the spike in inflation and living costs, we’ve broken the 100,000 barrier sooner than expected.
“As the costly Christmas period fast approaches, and many fearful another lockdown may be on the horizon, the need for affordable credit options is only going to increase over the next few months. We’re firm believers that lenders have a responsibility to offer transparent, affordable options for those who’d otherwise struggle to access mainstream loans. With our credit builder product – Step – we hope to help people to improve their credit score and restore their financial health.”