Freshly disclosed Loqbox data highlights the connection between UK credit scores and interest rates
In recent times, a growing number of locations across the UK have expressed heightened concern about their credit scores. According to a report by Loqbox, a financial wellbeing business based in Bristol, Raunds, Barking, Kippax, Wigan, Salford, Luton, Stapleford, Burton Upon Stather, Grimsby, and Wembley are among the top 10 areas in the UK where people are most worried about their credit standing.
This trend appears to have been influenced by several factors. Economists predicted an impending recession in April 2022, leading to a surge in searches for ways to improve financial standing and protect credit scores. Furthermore, household energy bills surged by 54% in April 2022 due to the energy crisis, adding to the financial pressures faced by many households.
However, it seems that Britons are not just passively worrying about their financial situations. Loqbox's analysis reveals an 1,800% increase in the search term 'Loqbox' over the past five years, indicating growing awareness and interest in the company's financial wellbeing solutions. In fact, by March 2023, Full Loqbox membership sign-ups were up by more than 15% compared to the previous year.
The over 15% increase in full membership registrations for Loqbox in March 2023 was due to a combination of factors. Enhanced marketing campaigns, improved platform features, and growing user trust in the service all played a role in attracting new members.
Loqbox offers three membership options: Loqbox Grow, Loqbox Save, and Loqbox Rent. Full members see a 125-point increase in their credit score in just six months of using Loqbox Grow, with even more improvement when using Loqbox Save and Loqbox Rent. Moreover, 88% of Loqbox members who track their credit score have seen improvements. A staggering 70% of Loqbox members confirmed that they felt better about their financial situation after using the service.
Interestingly, there seems to be a seasonal pattern in consumer credit score interest. The analysis revealed an annual surge in credit score interest, with a significant jump from the final week in December 2022 to January 2023. This annual surge has been consistent for the past five years, likely due to consumer anxiety following holiday spending or New Year's resolutions for stronger financial wellbeing.
However, it's worth noting that this annual surge in Loqbox membership sign-ups appears to have correlated with a dip in consumer morale. British consumer morale rose in June 2023, reaching its highest level since January 2022, but this rise coincided with a decrease in Loqbox membership sign-ups.
Despite this, the search term 'How to save money on gas and electricity' saw a 300% increase from January 2022 to November 2023, indicating a pressing need for improved financial support among consumers. With household energy bills scheduled to reach £3,000 annually from April 2023, it seems that the need for financial wellbeing solutions like those offered by Loqbox will remain high.
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