Company: Creditspring
Founder: Neil Kadagathur
Website: https://www.creditspring.co.uk/
About Creditspring
Creditspring was launched in 2016 and is an FCA-regulated responsible lender, providing a new way to access credit: through subscription finance. This new approach to lending makes it fairer, safer and easier to understand for consumers across the UK.
Household finances are currently at breaking point. 18% of people across the UK have used savings to pay off debts, 14% have used credit to pay bills and 10% have contacted a debt advice charity in the last 12 months. While credit is not inherently bad, and when used correctly, can be a real lifeline for vulnerable consumers, 30% of people currently believe that their bank could do more to support them make better financial decisions.
It’s clear that at present, there is a lack of access to responsible, affordable short-term credit options, which is where Creditspring’s subscription finance model is filling the gap.
By paying monthly to access credit when they need it, all Creditspring members pay a fixed fee, with clear repayment terms, capped and no hidden costs or confusing APRs, minimising the chance of them falling into debt. Using a subscription model that people use everyday, Creditspring is making borrowing easier to understand and provides borrowers with fair, clear and responsible solutions.
The loans are split into two equal amounts across the year. Members must pay off the first part of the loan before they can access the second, adding an extra layer of safety should they encounter any problems with repayment.
Beyond financial assistance, Creditspring offers an array of additional support solutions, one example being its Benefits Finder; a tool that can help to assess someone’s eligibility for government benefits. Over 45,000 members have already used this tool, unlocking £417 million in unclaimed benefits and over eight in ten (82%) who completed the survey discovered they were eligible for benefits they hadn’t yet claimed, with an average entitlement of £895 per month.
Creditspring’s members hub also helps to better educate its members, signaling to them when they might be eligible for a loan, providing weekly tips and bitesize articles to improve financial stability. The company also works with debt charity StepChange to ensure members are fully supported should they need additional help.
In 2023 alone, Creditspring provided 366,000 loans to its members, a 67% increase on the 2022 figure of 219,000. Today, Creditspring has increased its members by 91% over 2023 compared to the previous year, supporting its now 450,000 borrowers with nearly £250 million in responsible credit since launch, earning an excellent Trust Pilot score of 4.8 and a long list of over ten thousand positive testimonials.
It’s been a challenging few years for people across the UK, and as saving pots start to run dry after years of financial difficulty, people need access to affordable, simple and safe alternatives to mainstream credit options, today.
Through subscription finance, Creditspring is making credit easier to understand and helping to drive more responsible lending to transform a broken system.
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