Motor finance companies need to adopt technology that allows them to credit check a potential customer without leaving a footprint on their file, says Startline Motor Finance.
CEO Paul Burgess explained that multiple footprints on customer files held by credit checking agencies tended to lead to a reduced credit rating – but that in 2016, with more and more customers shopping around for finance, the whole approach was out of date.
He said, “The underlying assumption is that multiple credit checks on a customer’s file is a sign that they are often frequently rejected for credit or try to take out a lot of credit, both of which are understandably seen as undesirable.
“However, this is just not true in 2016. Online tools provide customers with the means to shop around for credit and lots of people will, quite rightly, spend time looking for the best deal, so multiple footprints are often left.
“This is in no way a reflection of them as a credit risk, so every finance company with which they come into contact leaving a footprint on their file is simply wrong. It is an area where the industry needs to change its model.”