Chetwood Financial launch world’s first dynamic loan
Chetwood Financial have launched the LiveLend Reward Loan. Designed for everyday people, we’re offering something no provider has before - a loan where the rate can fall when a customer’s credit score improves.
Every three months, we’ll review our customers’ credit score. For every 25 points a customer’s credit score has improved, 2% is shaved off their loan rate; reducing their monthly repayments and the amount they have to repay in total.
Using ClearScore data, we estimate that one in four (25%) of LiveLend’s customers will earn a reward within the first three months and almost half will see the loan rate reduced after 12 months. Those with lower credit scores will benefit the most.
Julia McColl, Head of Customer at Chetwood Financial, says: *"Many ordinary borrowers don’t qualify for the headline rates that are plastered in bank windows. You’ll either be offered a far worse rate or be rejected outright. And when you’re accepted for a loan you’re viewed as the same person for the entire term, often over many years. "[Chetwood Financial’s] tech changes this, improving your rate as you improve your score, across the lifetime of your loan. This is not only a fairer product, but is designed to help people further improve their financial position through positive nudges and clear incentives.”
If our customers’ credit score goes down, their rate will not increase. They’ll also benefit from a real rate with no impact to their credit score and no fees on their loan, ever.
You can find out more about our LiveLend Reward Loan below.
Retail Banker: British startup LiveLend launches dynamic loan