Personal loans slowed significantly amid the COVID-19 pandemic, but have since regained momentum, according to a report from JD Power.
According to the JD Power 2022 US Consumer Lending Satisfaction Study, competitive rates, easy access, and a variety of options have led to increased demand for personal loans, especially among the financially vulnerable population.
“Increasingly, personal loans are filling the void left by the end of pandemic-era relief efforts, bringing an important new dynamic for banks, credit card companies and fintechs at the center. of this market,” said Craig Martin, CEO of JD Power. and global head of wealth and loan intelligence, said. “While customers are largely satisfied with these products and the market continues to grow, it’s important for lenders to ensure that the experiences they offer match the promises they make to support better financial health. “
If you’re looking to take out a personal loan, comparing your options can help you get the best possible interest rate for your financial situation. Visit Credible to find your personalized interest rate without affecting your credit score.
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Financially Vulnerable Consumers Tackle Debt With Personal Loans
In its report, JD Power classified approximately 38% of personal loan borrowers as financially vulnerable. These consumers took out a personal loan to repay a debt or for a debt consolidation, to lower their interest rate on their current debt and to reduce their monthly debt payment.
Some lenders cater specifically to high-risk borrowers and have double the average number of financially vulnerable consumers, according to the report.
“As the personal loan market continues to grow rapidly, it’s critical to note that there is no single option that can do it all for all consumers,” said Tom Lawler, head of consumer intelligence. consumer loans at JD Power, said. “We are seeing a clear phenomenon in which industry-level averages provide perspective, but the experience of certain customer groups at the brand level may be materially different.
“The most successful companies have a clear understanding of the different needs and expectations of their target customers and optimally invest resources to meet or exceed the expectations of these different groups,” Lawler said.
When comparing consumer satisfaction among personal lenders, Goldman Sachs’ Marcus ranked first (776 on a 1,000-point scale), followed by US Bank (757) and American Express (754).
If you want to take out a personal loan, shopping around and comparing different rates and lenders can help you find the best option for you. Visit Credible to compare multiple lenders at once and be prequalified in minutes.
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Personal loans open doors to other financial products
Customer loyalty after taking out a personal loan hit an all-time high in 2022, according to JD Power. Overall customer loyalty has increased to 61% of loan customers, meaning they are likely to use their lender again.
This provides an opportunity for lenders who historically only offered personal loans, allowing them to expand with new financial products such as checking, savings, credit cards and investment options. It also presents consumers with new financial options, allowing them to potentially improve their financial situation.
If you’re looking to take out a personal loan, using a financial marketplace like Credible can help you compare multiple options at once. You can also contact Credible to speak to a personal loan expert and get all your questions answered.
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