Relevance of Customer Review as A Prevention Against High Interest Rate When Taking A Loan

Several studies and surveys have unveiled the relevance of customer reviews. Data has shown that almost all potential customers or clients use reviews as a yardstick in determining their loan decisions.

According to the Local Consumer Review (LCR) Survey 2018, it was observed that about 86{078eb84bbbeba8d2b274a2fe051ee1eef37966fd18e8b05b9bd4d35382fd19b3} of customers read reviews for local businesses. The survey further showed that about 57{078eb84bbbeba8d2b274a2fe051ee1eef37966fd18e8b05b9bd4d35382fd19b3} of customers will consider a decision or action for any business if it has 4 or more stars. While 91{078eb84bbbeba8d2b274a2fe051ee1eef37966fd18e8b05b9bd4d35382fd19b3} of customers, aged 18-34-year-old trust online reviews as though they are like personal recommendations.

In the business and financial sectors, almost all customers find recommendations and testimonials before making any decision to subscribe to a loan or other financial services. The relevance of doing this is to assist them in establishing trust and filter out companies that have a terrible reputation, especially when it comes to payment of bizarre interest rates.

A paradigm shift from the traditional personal recommendations and word-of-mouth referrals to customer-generated media reviews has succeeded in building trust and affinity, at the same time, increasing revenue and sales impact. In 2019, the LCR study showed that customers often read an average of 10 reviews, a 42{078eb84bbbeba8d2b274a2fe051ee1eef37966fd18e8b05b9bd4d35382fd19b3} increase from 7 reviews in 2017. They are mostly read on an online platform such as uk.collected.reviews during their research. 

Few customers review tracking sites for financial services are highlighted below:

Ø  Credit Karma: It is a website that allows you to share your review. It publishes reports, free credit scores, member reviews and insights that aid customers in their credit and loan decisions. Access to credit scores, past reviews as well as recommendations help customers to ascertain a priori knowledge on loan services.

Ø  Lending Tree: This online lending exchange links consumers with many lenders and credit partners who compete for business. On this site, customers can track their credit score and review all loan and credit card accounts. One other spectacular characteristic of this site is that it offers a variety of informational resources and helps customers have an informed experience on loan services. This review tracking site, laced with vital services such as lender ratings and reviews, financial calculators and interactive loan coaching tools, serves as a shield against credit partners’ mis-information on interest rate paid on loans obtained.

Ø  Yelp: This online review site collects reviews of financial services companies such as credit unions, mortgage brokers and makes the information available to prospective customers. This online review serves as a guide to choose rationally among groups of credit partners, in matters relating to interest rate.

Conclusion

The idea of collecting, curating and displaying customer reviews is a powerful way for shielding customers from falling victim to high interest rates and develop their trust with tested financial services. The use of reviews allows customers to be well-informed ,subscribe to credibility and social proof, and gives a better room of choices on the best credit partners to trade with.

Pauline

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