UK crying out for financial help even as lockdown restrictions lift

Creditspring, the subscription loan provider, reveals that it is signing up over 2,000 new members per month for its Stability Hub service, and has seen an 82% increase in members since the start of the pandemic. The free tool provides personalised support for members, including monthly financial health checks, alerts to tell them when they are pre-approved to borrow money, and actionable tips to support more informed and responsible financial decision making.

The initial months of the COVID-19 pandemic saw millions of people across the UK impacted financially, and this is something that remains an issue a year on. Despite the recent easing of lockdown restrictions, many are continuing to experience financial strain and uncertainty. In a recent survey, the ONS found that those that were the most financially impacted at the start of the pandemic – the self-employed, parents, young people and those living on the lowest household incomes – were still worse off in mid-April 2021. With its focus on providing clear, actionable support, the Stability Hub can help to guide these people towards a more financially stable future.

Stability Hub members receive a monthly financial health check and a personalised Stability Score which acts as a measure of an individual’s ability to withstand a financial shock and indicates eligibility for borrowing. Updated monthly, the Stability Score is accompanied by tailored guidance to help members take action to improve their scores, increase their creditworthiness and become more financially stable. Since the start of COVID, almost half (47%) of Stability Hub members have seen their scores increase, and in a recent survey, 90% of members said that Creditspring has helped them improve their financial stability, and eight in ten said it helped improve their creditworthiness.

Neil Kadagathur, Co-Founder and CEO of Creditspring, comments: “The financial impact of the pandemic is still being felt acutely by people across the country and they are in desperate need of support even as restrictions begin to lift. Our goal is to help people improve their financial health and prevent those who could easily fall into a cycle of expensive debt from falling prey to unscrupulous lenders. Our Stability Hub gives these people personalised guidance to regain control over their finances and helps work towards being able to access more affordable forms of credit.

“Unlike high-cost lenders that lure borrowers into a spiral of long-term debt, much like the dating app, Hinge, our job is done when our customers don’t need us anymore. We want to educate our members and be their guide and ally, helping them work towards a more financially stable, resilient and independent future.”

Lindsey Appleyard, Academic and CEO of Responsible Finance, comments: “With the events of the past year pushing many people into economic instability, there is an urgent need for highly-accessible, affordable financial products that support the overall financial wellbeing of consumers. Creditspring’s Stability Hub is a prime example of a product that does exactly this. It rightfully puts its users in full control of their finances and arms them with the information needed to help them make decisions that will fuel a brighter financial future”.

The Stability Hub has already attracted almost 30,000 registered members in the UK so far. Through the guidance given, one in five become eligible for Creditspring’s affordable credit services each month, saving them from turning to higher cost options such as payday loans. By the end of 2021, Creditspring, expects to have reached over 100,000 Stability Hub members.

Alongside educational tools, Creditspring provides affordable, easy-to-use loans for short term credit to help the UK’s 12-15 million ‘near-prime’ borrowers whose credit files are thin, making it harder for them to access mainstream credit products. Members have access to two loans per year, with clear repayment plans, capped costs and no hidden charges or confusing Annual Percentage Rates (APRs).